A

PROJECT REPORT
ON
TRAINING UNDERTAKEN AT

SBI LIFE INSURANCE

AJMER
“COMPARATIVE ANALYSIS
OF
DIFFERENT ASSET MANAGEMENT COMPANIES”
SUBMITTED IN PARTIAL FULFILLMENT
FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

Submitted By: Submitted To:-

Umashanker Dadhich SAMIT SHARMA

MBA Part III Senior manager

(2008-2010)

1
Certificate of company

2
Preface

3
 ACKNOWLEDGEMENT

Acknowledgement
I express my sincere thanks to my project guide, Mr. /Dr./Ms./Mrs.
_______________________________________, Designation _________________,
Deptt______________., for guiding me right form the inception till the successful
completion of the project. I sincerely acknowledge him/her/them for extending their
valuable guidance, support for literature, critical reviews of project and the report and
above all the moral support he/she/they had provided to me with all stages of this
project.
I would also like to thank the supporting staff ___________________________
Department, for their help and cooperation throughout our project.
(Signature of Student)
Name of the Students

4
 EXECUTIVE SUMMARY

Good experiences in life are very rare and one such was doing my summer project in

Prudential ICICI Asset Management company, Jaipur.

The project was undertaken to make a comparison between different mutual fund schemes in

terms of their returns and investors feedback..

Being a student and pursuing a career in finance sector it’s very much relevant to undergo a

project like this in Financial Services sector to get the best exposure, with a company that is in

its growth phase of life cycle

5
 TABLE OF CONTENTS

TOPICS PAGE NO.

Executive Summary 4

Industry Profile 7

Company Profile 25

Product Profile 29

Research objectives 44

Research Methodology 46

Data Analysis and Interpretation 50

Findings 83

Limitations 86

Recommendations 88

Bibliography 91

Annexure 93

6
 INDUSTRIAL PROFILE

Indian Mutual Fund Industry

The Indian mutual fund industry is dominated by the Unit Trust of India which has a total

corpus of Rs700bn collected from more than 20 million investors. The UTI has many

funds/schemes in all categories ie equity, balanced, income etc with some being open-ended

and some being closed-ended. The Unit Scheme 1964 commonly referred to as US 64, which

is a balanced fund, is the biggest scheme with a corpus of about Rs200bn. UTI was floated by

financial institutions and is governed by a special act of Parliament. Most of its investors

believe that the UTI is government owned and controlled, which, while legally incorrect, is

true for all practical purposes.

The second largest category of mutual funds are the ones floated by nationalized banks.

Canbank Asset Management floated by Canara Bank and SBI Funds Management floated by

the State Bank of India are the largest of these. GIC AMC floated by General Insurance

Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other

7
prominent ones. The aggregate corpus of funds managed by this category of AMCs is about

Rs150bn.

The third largest category of mutual funds are the ones floated by the private sector and by

foreign asset management companies. The largest of these are Prudential ICICI AMC and

Birla Sun Life AMC. The aggregate corpus of assets managed by this category of AMCs is in

excess of Rs250bn

The growth and development of Indian Mutual Fund Industry can be broadly divided into four

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)

Highlight of phase was entry of Public Sector Funds. In 1987 marked the entry of non- UTI,

public sector mutual funds set up by public sector banks and Life Insurance Corporation of

India (LIC) in June 1989 and General Insurance Corporation of India (GIC) In Dec. 1990.

8
Public Sector Bank also established their own Mutual Funds :-

SBI Mutual Fund (June 1987)

Canbank Mutual Fund (Dec 87)

Punjab National Bank Mutual Fund (Aug 89)

Indian Bank Mutual Fund (Nov 89)

Bank of India (Jun 90)

Bank of Baroda Mutual Fund (Oct 92).

By the end of 1993, the mutual fund industry had assets under management of Rs.47,004

crores.

Third Phase (1993 – 2003)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year

in which the first Mutual Fund Regulations came into being, under which all mutual funds,

except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged

with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The number of mutual fund houses went on increasing, with

many foreign mutual funds setting up funds in India and also the industry has witnessed

several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds

with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of

assets under management was way ahead of other mutual funds

9
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

broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified

Undertaking of Unit Trust of India, functioning under an administrator and under the rules

framed by Government of India and does not come under the purview of the Mutual Fund

Regulations

Fund Regulations, and with recent mergers taking place among different private

sector funds, the mutual fund industry has entered its current phase of consolidation and

growth. As at the end of September, 2004, there were 29 funds, which manage assets of

Rs.153108 crores under 421 schemes

10
GROWTH IN ASSET UNDER AMNAGEMENT

11
Company profile

12
 INTRODUCTION

In today’s financial market there are various investment

instruments like equity shares, preference shares which give varying returns and also bear

high risk. Similarly we have fixed income investment instruments like Bonds, Debentures,

Fixed deposits which is less risky. In last 42 years a new investment product was developed

called Mutual Fund.

Mutual Fund

A Mutual Fund is common pool of money into which

investors place their contribution that are to be invested in accordance with a stated objective.

The ownership of the fund is thus joint or “Mutual”, the fund belongs to all investors. A single

investor’s ownership of the fund is in the same proportion as the amount of the contribution

made by him or her bears to the total amount of the fund.

A mutual fund uses the money collected from investors t buy those

assets which are specifically permitted by its stated investment objectives.

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 then invested in

capital market instruments such as shares, debentures and other securities. The income earned

through these investments and the capital appreciation realised are shared by its unit holders

in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable

investment for the common man as it offers an opportunity to invest in a diversified,

professionally managed basket of securities at a relatively low cost.

13
The flow chart below describes broadly the working of a mutual fund:

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational set up of

a mutual fund:

14
 Funds
CLASSIFICATION OF MUTUAL FUNDS

There are different types of mutual funds to cater for different investors’ needs,
OPEN- CLOSE-
whatever the age, and financial position, risk tolerance and return expectations. The Mutual
ENDED ENDED
fund schemes can be classified by their investment objective like income, growth, tax saving

etc as well as number of units (if unlimited open Mutual funds can be classified as following:
EQUITY DEBT/INCOME BALANCED-
FUNDS -FUNDS FUNDS

Diversified
Bond Funds
Funds

Sector Funds Gifts Funds

Index Funds Money Market

Funds
15
Tax saving
Funds
Mutual Funds can be divided on the basis of maturity.

1) Open Ended Schemes

These schemes are characterized by the fact that they are available for subscription

throughout the year i.e. they do not have a fixed maturity period. Investors can buy or sell the

units of these schemes at the prices based on ‘Net Asset Value’ of the fund from and to the

mutual fund on any business day. These stocks are generally not listed on stock exchange.

Open ended schemes are preferred for liquidity. Such funds can issue and redeem

during the lifetime of the scheme. Hence, the unit capital of open-ended schemes fluctuates on

daily basis.

16
2) Close ended schemes

Close-ended schemes have fixed maturity period. Investors can buy these during the

period when they are open for initial public offering (IPO). After these they cannot issue

except bonus or rights issue. However we can buy or sell these units of the scheme on the

stock exchange where they have being listed. The maturity period of these schemes usually

varies between 3 to 15 years.

Mutual funds can be classified with reference to the type of instrument in which money

has to be deposited as per the requirements of the investors.

The various types are as follows:

1) EQUITY FUNDS

Equity funds are for those are ready to take high risk for high returns. These funds

invest in the stocks of diversified list of industries. Such funds invest in shares with

potential of growth and capital appreciation. They invest in well-established

companies where the company itself and industry are thought to have good long term

potential.

These are classified further into ‘growth’ and ‘dividend’ option.

Growth Option generally aims to provide capital appreciation over medium to long

term higher risks only in equities, which are expected to give higher returns.

Dividend Option generally distributes the income and profits realized by the way of

dividend.

17
 Equity funds can be of the type diversified funds, sector funds, index funds or tax

saving funds.

• Diversified Funds

Diversified funds choose to invest in number of sectors at the same time.

• Sector Funds

Sector funds choose to invest in one or more chosen sectors of the equity markets.

These sectors could vary depending on the investors preference and risk-return

attributes of the sector. These funds invest in securities of specific industry or sector of

the economy such as Health Care, Technology, Leisure, Utilities or precious metals.

The fund enables the investor to diversify holdings among many companies within an

industry, a more conservative approach than investing in one company. The sector

funds offer the opportunity for sharp capital gains in certain cases.

• Index Funds

18
 These generally buy shares in all the companies composing the BSE Sensex or NSE

Nifty or any other broad stock market indices. These schemes invest in the securities

in the same weightage comprising of the index. NAV’s of such schemes would rise or

fall in accordance with the rise or fall in the index, though not exactly by the same

percentage. These are not suitable for investors who must conserve their principal or

maximize their current income.

• Tax Saving Funds

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.

2) DEBT FUNDS

INCOME FUND

These schemes are targeted at risk averse people. They look toward to provide current

consistent income with preservation of capital. These funds invest in short term as

well as long term debt instruments. The short-term debt instruments include call

money lending, commercial papers, certificate of deposit and treasury bills. The long-

term debt instruments include bond issued by central and state government, public

sector organizations, public financial institutions, private sector companies. The fixed

income category funds vary greatly in their stability of principal and their dividends.

• Bond Funds

19
 Bond funds provide fixed return who desire safety. The savings of the investors are

invested in various kinds of bonds in which investment objectives is safety. Bond

funds are more liquid diversified and conservative investments with modest capita

gains. Prices of Bonds changes with the changing interest rates.

• Gilts Funds

A Gilt fund invests only in securities that are issued by the government and therefore

does not carry any credit risk. These funds invest in long

and short term securities issues by the government. These funds are preferred by

institutional who have to invest only in government paper.

• Money Market funds

For the cautions investors, these funds provide high stability of principal while seeking

moderate to high current income. They invest in highly liquid, virtually risk free,

short-term debt securities of the agencies of the Indian government, banks &

corporations and treasury bills. Because of their short-term investments money market

funds usually have constant unit price, only the yield fluctuates. Money market funds

are used in short term liquid assets like Certificate of deposit (CD’s), Treasury bills

and Commercial papers.

• Balanced Funds

These schemes are meant for the risk neutral investors. They provide both for growth
and income. Balanced funds invest both in equity and debt instruments as indicated in
the offer document. The downside of these funds is that you may not see your capital
appreciating at the same pace as the sensex. But in the depreciating market you may
not be disappointed with the returns.

20
 ADVANTAGES OF MUTUAL FUNDS

1. PROFESSIONAL MANAGEMENT

Use of Mutual funds brings about professional management of funds. Good fund

managers with excellent research team can do better job of monitoring the portfolio.

2. DIVERSIFICATION

Mutual funds invest in broad range of securities. This limits the investment risk by

reducing the effect of possible decline in the value of any one security. One of the important

reasons to invest in mutual funds in that the risk is spread over number of stocks.

3. LIQUIDITY

In the open-ended scheme we can get redeem and receive payment within three days.

In the close-ended scheme, the units can be sold at the stock exchange at prevailing market

price.

4. CONVENIENCE AND FLEXIBILITY

Investing in Mutual funds has large amount of convenience. While we own just one

security rather than many and still enjoy benefits of diversified portfolio and wide range of

services. Fund managers decide the securities to trade in, collect the interest payments and see

that the dividend on portfolio investments are dully received and rights exercised. Another big

advantage is that we can move the funds easily form one fund to another in the mutual fund

21
family. This also allows you to easily rebalance your portfolio (to respond to economic

changes and significant fund management). With the regular investment plans, regular

withdrawal plans and dividend reinvestment plans. You can systematically invest or withdraw

the funds as per your needs and convenienc

5. WELL REGULATED

All mutual funds are registered with SEBI and they function within the provisions of

strict regulations designed to protect the interest of the investor. The operations of mutual

funds are regularly monitored by SEBI. All the acts are thus answerable to Securities

Exchange Board of the (SEB

6. AFFORDABILITY & NUMBER OF SCHEMES

Individuals may lack sufficient amount of funds to invest in high valued stocks, but

mutual fund industry have large corpus to invest in diversified stocks.

22
RISKS INVOLVED IN MUTUAL FUNDS

After understanding the basics of mutual funds an investor can build a portfolio. But

before building a portfolio it is necessary to understand various other elements that affect the

potential value of the investment over the years. The basic thing to be kept in mind is that,

when you invest in mutual fund there is no guarantee that you will end up with more money

when you withdraw your investment than what you started out with. That is the potential of

loss is always there. The loss in the value of your investment is what considered as risk in

investment.

Risk associated with investing in Fixed Income, Monthly Income Plans and Money Market

Funds .

. Interest Rate Risk :

As with all debt securities, charges in interest rates will affect Scheme’s Net Asset Value as

the prices of securities generally increase as interest rates decline and generally decrease as

interest rates rise. Prices of longer-term securities generally fluctuate more in response to

interest rate changes than do shorter-term securities. Interest rate movements in the Indian

debt markets up or down in debt and money market securities and thereby to possible large

movements in the NAV.

23
 • Liquidity or Marketability Risk :

This refers to the ease with which a security can be sold at or near its true value. The

primary measure of liquidity risk is the spread between the bid price and the offer price

quoted by dealer. Liquidity risk is characteristics of the Indian fixed income market.

• Credit Risk :

Credit risk or default risk refers to the risk that an issuer of a fixed income security may

default (i.e., will be unable to make timely principal and interest payments on the

security). Because of this risk debentures are sold at a yield spread above those offered on

Treasury Securities which are sovereign obligations and generally considered to be free of

credit risk. Normally, the value of a fixed income security will fluctuate depending upon

the actual changes in the perceived level of credit risk as well as the actual event of default

• Reinvestment Risk :

This risk refers to the interest rate levels at which cash flows received from the securities

in the Scheme or from maturities in the Scheme are reinvested. The additional income

from reinvestment is the “interest on interest” component. The risk is that the rate at

which interim cash flow can be reinvested

Other types of risk are as follows :

Change in tax rates / structure

Government regulation

Political uncertainty
Exchange rates risk

24
 PRODUCT PROFILE

Investment Objective :- it is an open ended equity scheme that seeks to generate capital

appreciation and income distribution to unit holders by investing predominantly in

equity and equity related securities of the companies belonging to the infrastructure

industries and balance in debt securities and money market instruments including

call money.

Performance of the fund since inception

25
Performance of the fund since inception

26
Performance of the fund since inception

27
Performance of the fund since inception

28
PruICICI index Fund

It is an open ended Index linked growth fund. The inception date of the fund is 26 th February

2002.

Investment objective :- the objective of the plan is to invest in companies whose securities

are included in Nifty and subject to tracking errors, to endeavor to achieve the returns of the

above index as closely as possible.

Performance of the fund since inception

PruICICI FMCG Fund

It is an open ended FMCG Sectoral fund. The fund was started on 31st march 1999.

29
Investment objective :- to seek to generate long term capital appreciation from a portfolio

that is invested predominantly in equity and equity related securities to FMCG

Companies.

Performance of the fund since inception

PruICICI Monthly Income Plan

It is an open ended fund that was started on 10th November 2000.

30
Investment Objective: - To generate regular income through investment in debt and money

market instruments and also to generate long term capital appreciation by investing a portion

in equity and equity related securities.

Performance of the fund since inception

PruICICI Tax Plan

It is an open ended equity linked savings scheme started in 19th august 1999.

31
Investment Objective :- To seek to generate long term capital appreciation from a portfolio

that is invested predominantly in equity and equity related securities.

Performance of the fund since inception

32
DATA ANALYSIS AND

INTERPRETATION

Returns in Predominantly Large Cap Fund

Funds Prudential HDFC TATA Pure Reliance Kotak 30

ICICI Power Growth Equity Vision

Duration Fund Fund Fund

Last 1 Year 55.87% 41.32% 49.34% 49.52% 59.7%

Last 3 Years 54.29% 49.24% 58.44% 48.48% 55.9%

33
Last 5 Years 41.88% 38.21% 37.52% 25% 37.6%

Since 16.75% 24.72% 33.84% 11.82% 30.5%

Inception

Returns in Predominantly Mid Cap fund

Funds PruICICI HDFC Capital Reliance Growth Kotak Mid-Cap

Emerging Builder Fund Fund

Duration S.T.A.R.
Last 1 Year 53.66% 34.51% 66.52% 37.9%

Last 3 Years -- 56.57% 85.8% --

Last 5 Years -- 39.57% 59.53% --

Since 54.82% 13.91% 33.7% 34.5%

Inception

In this category the investment of the scheme is goes to

Mid Cap companies. In this category scheme invest in the growing mid cap companies. Both

growth and decline in these mid cap companies.

In this category Reliance Growth Fund has given the

maximum return in last one year followed by PruICICI Emerging S.T.A.R. Fund. This

category is dominated by Reliance Growth Fund.

34
 Returns in Tax Saving Funds (ELSS)

Funds PruICICI HDFC Tax TATA Tax Reliance Tax Kotak

Tax Plan Saver Saving Fund Saver Fund Tax

Duration Saver
Last 1 Year 36.32% 47.47% 28.57% -- --

Last 3 Years 64.35% 67.05% 51.41% -- --

Last 5 Years 47.64% 48.16% 37.07% -- --

Since 33.6% 38.9% 26.75% 23.77% 4.5%

Inception

In tax saving fund (ELSS) the investment from people is done to get tax

benefit.

These funds have a minimum lock in period of 3 years. HDFC Tax Saver is

giving the maximum return and PruICICI Tax plan is at second place in terms of returns.

Reliance Tax Saver Fund and Kotak Tax Saver have been just started and the least

return is given by Kotak.

35
 Returns in Multi Cap Funds

Funds PruICICI HDFC TATA Reliance Kotak

Dynamic Premier Growth Equity Opportunities

Duration Plan Multi Cap Fund Opportunities Fund

Fund Fund
Last 1 Year 61.47% 32.8% 25.95% 65.71% 54.1%

Last 3 Years 54.52% -- 49.29% -- --

Last 5 Years -- -- 34.34% -- --

Since Inception 52.86% 34% 9.13% 58.37% 57.1%

The scheme is mainly invest in a diversified portfolio of Mid Cap & Large

Cap companies. In this category PruICICI is the best performing fund. The second best

performing fund is Reliance.

PruICICI is performing well in this fund since its inception and giving very

good returns to the investors.

36
 Returns in Sectoral Fund

Funds PruICICI TATA Life Sciences And Kotak Tech

Technology Fund Technology Fund

Duration
Last 1 Year 25% 38.77% 23.4%

Last 3 Years 48.21% 51.19% 41.4%

Last 5 Years 24.57% 33.92% 20.1%

Since Inception 24.57% 22.03% -4.2%

These are the sectoral funds invest in a particular sector with

a objective of generating long term capital appreciation by investing equity and equity related

securities.

Tata fund is doing extremely well in this scheme But if we

compare the returns since inception PruICICI is performing better than TATA.

37
Returns in Index Fund

Funds PruICICI Reliance Index HDFC Index

Index Fund Fund Fund

Duration
Last 1 Year 45.32% 32.79% 49.21%

Last 3 Years 41.58% -- 40.83%

Last 5 Years -- -- --
Since Inception 26.37% 25% 33.7%

In this scheme in the last one year sbi is the best performing fund

and in last years PruICICI is the best performing fund. PruICICI Index Fund is giving

consisted return over a period of time.

38
Returns in Income funds

Funds PruICICI HDFC TATA Reliance Kotak

Monthly Monthly Monthly Monthly Income

Duration Income Plan Income Plan Income Fund Income Plus

Plan
Last 1 Year 11.44% 15.47% 4.74% 17.64% 11.5%

Last 3 Years 10% -- 6.81% -- --

Last 5 Years 10.10% -- 8.92% -- --

Since 10.6% 12.46% 9.01% 10.82% 9%

Inception

The objective of the income funds is to generate regular

income through investing in debt and money market instruments, and also to generate long

term capital appreciation by investing some part in equities.

In this particular fund PruICICI is giving consisted return

since inception but in the last year Reliance has given the maximum return.

39
 Returns in Balanced Funds

Funds PruICICI HDFC TATA Kotak

Balanced Balanced Fund Balanced Balance

Duration Fund Fund

Last 1 Year 38.27% 27.64% 31.6% 24%

Last 3 Years 38.11% 30.57% 39.81% 35.5%

Last 5 Years 27.15% 22.88% 27.88% 27%

Since Inception 17.15% 18.23% 17.17% 19.1%

In the balanced fund the fund managers try to maintain a balance between

fixed income securities and equities. The main objective of the fund is to provide a regular

income as well as long term capital appreciation.

In this scheme PruICICI is the best performing fund with a consistent

return and is followed by TATA Balanced Fund.

Returns in Gilt Fund

40
 Funds PruICICI HDFC Gilt TATA Gilt Reliance Gilt Kotak Gilt

Gilt Fund Fund Securities Securities Investment

Duration Fund Fund

Last 1 Year 5.04% 3.79% 1.85% 5.43% 2%

Last 3 Years 4.97% 3.86% 2.48% -- 3.7%

Last 5 Years 6.71% -- 10.5% -- 10%

Since 8.31% 5.78% 12.4% 4.9% 11.6%

Inception

• These funds invest in government securities and the objective of this fund is to

generate income through investments in Gilts of various maturities.

• In this fund the PruICICI is the most appropriate fund to invest because of consistent

performance over a period of time.

Returns in Liquid Fund

41
 Funds PruICICI HDFC TATA Reliance Kotak

Liquid Liquid Fund Liquid Fund Liquid Fund Liquid

Duration Plan
Last 1 Year 5.99% 5.73% 5.66% 5.22% 5.4%

Last 3 Years -- 4.99% 5.02% 4.9% 4.8%

Last 5 Years -- 5.76% 5.8% 5.82% 5.7%

Since 5.35% 6.2% 6.56% 6.74% 6.2%

Inception

• The objective of the liquid fund is to generate returns from low risk investments

which provide high level of liquidity. In the last one year PruICICI liquid plan has

given the highest return followed by HDFC Liquid Fund.

Systematic Investment Plan (SIP)

• Predominantly Large Cap Funds

42
 Funds PruICICI TATA Pure Reliance Kotak 30

Power Equity Fund Vision Fund

SIP Available Available Available Available

Min. Rs.1000 Rs.1000 Rs.500 Rs.1000

Investment
Returns in Last 24.98% 12.95% 32.78% 31.46%

1 Year
Returns in Last 44.67% 41.51% 48.71% 47.02%

3 Years
Returns in Last 49.17% 45.36% 59.32% 47.13%

5 Years
Returns Since 25.78% 33.66% 35.49% 33.58%

Inception

Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000 invested in

a year.

Predominantly Mid Cap fund

Funds PruICICI Reliance Growth Kotak Mid-

Emerging Fund Cap

S.T.A.R.
43
SIP Available Available Available

Min. Rs.1000 Rs.1000 Rs.1000

Investment
Returns in Last 8.85% 40.85% 2.88%

1 Year
Returns in Last -- 66.88% --

3 Years
Returns in Last -- 69.88% --

5 Years
Returns Since 42.42% 40.59% --

Inception

Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000 invested

in a year.

Tax Saving Funds (ELSS)

Funds PruICICI TATA Tax Reliance Kotak Tax

Tax Plan Saving Fund Tax Saver Saver

Fund
SIP Available Available Available Available

Min. Rs.500 Rs.500 Rs.500 Rs.1000

Investment

44
Returns in -1.13% 23.64% -- -27.96%

Last 1 Year
Returns in 50.09% 41.73% -- --

Last 3 Years
Returns in 55.76% 42.37% -- --

Last 5 Years
Returns 41.33% 30.96% -- --

Since

Inception

Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000

invested in a year.

Multi Cap Funds

Funds PruICICI TATA Reliance Kotak

Dynamic Growth Equity Opportunities

Plan Fund Opportunities Fund

Fund
SIP Available Available Available Available

45
Min. Rs.1000 Rs.1000 Rs.500 Rs.1000

Investment
Returns in 26.82% -- -- 28.09%

Last 1 Year
Returns in 49.99% -- -- --

Last 3 Years
Returns in -- --. -- --

Last 5 Years
Returns Since 52.36% -- -- --

Inception

• Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000

invested in a year.

Sectoral funds

Funds PruICICI TATA Life Sciences Kotak Tech

Technology And Technology

Fund Fund
SIP Available Available Available

Min. Investment Rs.1000 Rs.1000 Rs.1000

Returns in Last 1 -3.95% -- 11.22%

Year

46
Returns in Last 3 31.26% -- 29.05%

Years
Returns in Last 5 34.23% -- 28.41%

Years
Returns Since 24.61% -- --

Inception

• Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000

invested in a year.

Index Funds

Funds PruICICI Reliance HDFC Index Fund

Index Fund Index Fund

SIP Available Available Available

Min. Investment Rs.1000 Rs.500 Rs.1000

Returns in Last 1 28.83% --

Year
Returns in Last 3 36.19% --

Years
Returns in Last 5 -- --

47
Years
Returns Since 35.8% --

Inception

• Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000

invested in a year.

Income funds

Funds PruICICI TATA Reliance Kotak

Monthly Monthly Monthly Income

Income Income Fund Income Plus

Plan Plan
Available Available Available Available

Min. Investment Rs.1000 Rs.1000 Rs.500 Rs.1000

Returns in Last 8.19% -- -- 8.01%

1 Year
Returns in Last 9.65% -- --- --

3 Years
Returns in Last 9.94% -- -- --

5 Years

48
Returns Since 10.05% -- -- --

Inception

• Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000

invested in a year.

Balanced Funds

Funds PruICICI TATA Kotak Balance

Balanced Fund Balanced Fund

SIP Available Available Available

Min. Investment Rs.1000 Rs.1000 Rs.1000

Returns in Last 1 15.95% 8.03% 25.95%

Year

Returns in Last 3 31.74% 32.04% 39.22%

Years

49
Returns in Last 5 32.8% 32.45% 36.82%

Years

Returns Since 25.66% 21.43% --

Inception

• Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000

invested in a year.

Gilt funds

Funds PruICICI TATA Gilt Reliance Gilt Kotak Gilt

Gilt Fund Securities Securities Investment

Fund Fund

SIP Not Available Not Available

Available Available
Min. -- Rs.2000 -- Rs.1000

Investment
Returns in Last -- -- --

1 Year

Returns in Last -- -- --

3 Years

50
Returns in Last -- -- --

5 Years

Returns Since -- -- --

Inception

• Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000

invested in a year.

Liquid plans

Funds PruICICI TATA Liquid Reliance Kotak Liquid

Liquid Plan Fund Liquid Fund

51
SIP Not Not Not Not

Available Available Available Available

Min. Investment -- -- -- --

DEMOGRAPHIC ANALYSIS

AGE GROUP OF RESPONDENTS

• DATA TABLE

AGE GROUP NUMBER OF SAMPLES

20-30 Years 53
31-40 Years 67
41-50 Years 47
51-60 Years 25
Above 60 Years 18
TOTAL NO. OF SAMPLES 200

52
 80
No. of Respondents
67
70
60 53
47
50
40 Series1
30 25
18
20
10
0
20-30 31-40 41-50 51-60 Above 60
Years Years Years Years Years
Age Group

INCOME GROUP OF RESPONDENTS

DATA TABLE

MONTHLY INCOME IN Rs. NUMBER OF SAMPLES

10,000-15,000 24
15,000-20,000 26
20,000-25,000 45
25,000-30,000 39
30,000-35,000 30
35,000-40,000 21
Above 40,000 15
TOTAL SAMPLE SIZE 200

53
 No. of Repondents 50 45
45
39
40
35 30
30 26
24
25 21 Series1
20 15
15
10
5
0
10,000- 15,000- 20,000- 25,000- 30,000- 35,000- Above
15,000 20,000 25,000 30,000 35,000 40,000 40,000
Monthly Income

• PROFESSION OF THE RESPONDENTS

Business 85
Service 53
Consultant 17
Others 45
Total Sample Size 200
90 85
No. of Respondents

80
70
60 53
50 45
Series1
40
30
17
20
10
0
Business Service Consultant Others
Profession

54
Question 1. What are your preferred investment priorities?
: Reason for selection of the question - The main reason behind the selection
of this question is to find out the inclination of the individuals towards various investment
options available. With the help of the data available we can make out the type of investment
options available as well as the degree of inclination towards that option.

• DATA TABLE

TYPE OF INVESTMENT NUMBER OF RESPONDENTS

MUTUAL FUNDS 78
INSURANCE 53
BONDS AND DEBENTURES 15
EQUITIES AND SHARES 34
PPF/NSC 11
REAL ESTATE 8
TOTAL SAMPLE SIZE 200
No. of Respondent

90 79
80
70
60 53
50
34 Series1
40
30
15 11
20 8
10
EQUITIES AND

REAL ESTATE
DEBENTURES

0
INSURANCE
MUTUAL

PPF/NSC
BONDS AND
FUNDS

SHARES

Type of investment

55
ANALYSIS: -
 People prefer Mutual funds, Insurance, and Shares as the first three preferences of
investment.
 Mutual Funds accounts for about 38% of the total investment made by individuals.
 It’s followed by Insurance with 26.5% and Shares with 17%
.

Question 2. Are you aware of mutual fund as a investment option?

Reason for selection of the question: - This question is selected in the questionnaire to
know about the level of awareness of various investors regarding MUTUAL FUNDS as an
investment option. The research finds out weather the various investors are aware about the
MUTUAL FUNDS

• DATA TABLE
AWARE ABOUT MUTUAL FUNDS NUMBER OF RESPONDENTS
YES 175
NO 25
TOTAL SAMPLE SIZE 200
Awreness about mutual funds

25

YES
NO

175

56
ANALYSIS:-
• From the analysis of the above data we can make out that 87.5% people are aware
about the MUTUAL FUNDS plans.
• Although MUTUAL FUNDS plans being a new concepts, but they are picking up at a
very fast pace because of various benefits.
• The following data also shows that now people are becoming aware about the
MUTUAL FUNDS as investments option along with the insurance policy.
• The remaining 12.5% people who are unaware about the MUTUAL FUNDS Plans can
be the target market for the various Asset Management Companies.

Question 3. Do you know how MUTUAL FUNDS Plan works?

Reason for selection of the question: - The reason behind including this question is to find
the awareness level of the people about the working of the MUTUAL FUNDS Plans. This
question will usher the various misconceptions that people are having about MUTUAL
FUNDS.

DATA TABLE
AWARENESS ABOUT WORKING NUMBER OF
OF MUTUAL FUNDS RESPONDENTS
YES 130
NO 45
TOTAL SAMPLE SIZE 175

Awareness about working of mutual funds

45

YES
NO

130

ANALYSIS

57
 • From the above data we can very easily make out that still 26% people are unaware
about the working of the MUTUAL FUNDS plans.
• Although people have bought MUTUAL FUNDS as insurance as well as investment
plan but they are still not aware about how does a MUTUAL FUNDS Plan works.

Question 4. Do you have any type of MUTUAL FUNDS ?

Reason for selection of the question: - This question was selected in the survey
questionnaire to simply find out that what percentage of people is having mutual fund. This
will give us an idea about the market potential of the mutual fund Industry in India.
• DATA TABLE

RESPONDENTS WITH MUTUAL NUMBER OF

FUNDS RESPONDENTS
YES 140
NO 60
TOTAL SAMPLE SIZE 200

Respondents having mutual funds

60

YES
NO

140

ANALYSIS
 From the data that is collected it can very easily be make out that 70% of the
respondents are having mutual funds.

58
  This gives us a general idea that in the educated class most of the people are inclined
towards mutual funds.


Question 5. What do you look for in an Asset Management Company

?
Reason for selection of the question: The main reason behind the selection of this
question is to know about what are the qualities that are looked for in Asset Management
Company. The data collected will be helpful for us to understand the perception of the
investor about AMC.
• DATA TABLE

NO.OF
QUALITIES THAT ARE LOOKED RESPONDENTS
HISTORY OR TRACK RECORD 53
RETURNS 78
QUALITY OF SERVICE 41
MANAGEMENT STYLE 12
PRUDENT AND SOUND MANAGEMENT 16
No. of Respondents

TOTAL SAMPLE SIZE 200

90 78
80
70
60 53
50 41
Series1
40
MANAGEMENT
PRUDENT AND
MANAGEMENT

30
HISTORY OR

16
QUALITY OF

20 12
RETURNS

10
SERVICE
RECORD

0
TRACK

SOUND
STYLE

QualitiesLookedinAMC

ANALYSIS
 From the data available through survey we can easily make out that 39% of people
buy mutual funds from a company on the basis of returns and 26.5% of people buy
mutual funds from a company on the basis of history and track record of the AMC.

59
  20.5% of people buy it on the basis of quality of service of that particular AMC.

Question 6. You have invested in mutual fund of which company?

Reason for selection of the question: This question was simply selected to know
the share of the various Asset Management Companies in the market.
• DATA TABLE
NUMBER OF
ASSET MANAGEMENT COMPANY RESPONDENTS
Prudential ICICI 39
Reliance 42
HDFC 13
TATA 22
KOTAK 17
OTHERS 7
TOTAL SAMPLE SIZE 140
No. Of Respondents

45 42
39
40
35
30
25 22
17 Series1
20
13
15
10 7
5
0
I
IC

S
e

K
C

A
nc
C

R
A
T
F
lI

E
T
A
D
lia

H
t ia

O
T
H
e

T
K
en

O
d
ru
P

Asset Management Companies

ANALYSIS
 Out of the 140 people, Prudential ICICI accounts for around 28%, Reliance accounts
for 30%, followed by TATA that accounts for around 15%..
 Other companies are also in competition like HDFC and Kotak..

60
Question 7. What is your perception about MUTUAL FUNDS Plans over
ULIP Plans?
Reason for selection of the question: The basic reason for the inclusion of this
question is to know about the perception of the people of the MUTUAL FUNDS Plans over
Unit Linked Insurance Plans.
• DATA TABLE
PRECPTION OF MUTUAL FUNDS OVER ULIP NUMBER OF RESPONDENTS
HIGHER RETURNS 95
FLEXIBILITY 40
VARIETY OF OPTIONS 30
EASY LIQUIDITY OPTIONS 20
ANY OTHER 5
TOTAL SAMPLE SIZE 200

85
No. of Respondents

90
80
70
60
50 39 42
Series1
40 29
30
20
10 5
FLEXIBILITY

0
LIQUIDITY
OPTIONS
RETURNS

OPTIONS
VARIETY

OTHER
HIGHER

ANY
EASY
OF

Perception of mutual fund over ULIP

ANALYSIS:
• On the basis of the data collected it was observed that 42.5% of people are inclined
towards the MUTUAL FUNDS mainly because it promises higher returns.Among
the other major reasons are flexibility, availability of options available and the easy
liquidity.
Question 8.How do you select and choose which MUTUAL FUND to buy?

61
Reason for selection of the question: The data collected will give us an insight about
what are the basic reasons for the selection of a company’s MUTUAL FUNDS Plan. This will
help up to provide suggestions to improve the present MUTUAL FUNDS so as to match to
the customers requirements.
• DATA TABLE
REASON FOR SELECTION OF A COMPANY’S NUMBER OF
MUTUAL FUNDS PLAN RESPONDENTS
BRAND NAME 30
PROMPT AND GOOD SERVICE 25
HIGH RETURNS 35
VARIETY OF OPTIONS 25
ADVERTISEMENTS 20
ANY OTHER 5
TOTAL SAMPLE SIZE 140
No. of respondents

40 35
35 30
30 25 25
25 20
20 Series1
15
10 5
ADVERTISEMENT
GOOD SERVICE

HIGH RETURNS

5
BRAND NAME

VARIETY OF

ANY OTHER
PROMPT AND

0
OPTIONS

reasons for selection

ANALYSIS
 On analysis of the data collected 35 out of 140 respondents i.e. 25% opted for
MUTUAL FUNDS on the basis of high returns provided by the company.
 Brand name, variety of options, service and advertisements are also important.

Question 9.Are you satisfied with the service offered by Prudential

SBI?

62
Reason for selection of the question: The data is collected to know the level of
satisfaction of the various policyholders of the SBI. This is to reveal the status of the various
services that are provided by the SBI.
DATA TABLE
NUMBER OF
SATISFACTION LEVEL
RESPONDENTS
FULLY SATISFIED 19
SATISFIED 29
NOT SATISFIED 8
TOTAL SAMPLE SIZE 56

35
No. of Respondents

29
30

25
19
20
Series1
15

10 8

0
FULLY SATISFIED SATISFIED NOT SATISFIED
Satisfaction Level

ANALYSIS
• On analysis of the responses obtained by the respondents it was a large chunk of
customers are either fully satisfied or satisfied by the services offered by the Prudential
ICICI

FINDING

63
 • Most of the respondents prefer MUTUAL FUNDS as a better option for Investment.
People prefer Mutual funds, Insurance, and Shares as the first three preferences of
investment.
• Prudential ICICI has a good market share i.e. 28%.

• Prudential ICICI is performing well in terms of returns in most of the plans offered by

the company

• Most of the people are aware about the mutual fund as a investment option.

• People are somehow interested in the Stock Market, irrespective of the fact that most of

them are not trading currently.

• Around 26% of people who are aware about the mutual fund are not aware about the

working of mutual funds.

• People’s perception about mutual funds over unit linked insurance plans is quite good.

They perceive mutual funds as more flexible and liquid.

• Most of the select the company to invest in mutual funds on the basis of returns which is

followed by brand name and quality service. On the basis of the data collected it was

observed that 42.5% of people are inclined towards the MUTUAL FUNDS mainly

because it promises higher returns.

• From the data available through survey we can easily make out that 39% of people buy

mutual funds from a company on the basis of returns and 26.5% of people buy mutual

funds from a company on the basis of history and track record of the AMC

BIBLIOGRAPHY
1. www.sbiindia.com

64
2. www.pruicici.com

3. www.mutualfundindia.com

4. www.moneycontrol.com

5. www.economictimes.com

6. Fact Sheets of Various AMC’s

7. Periodicals and Journals

65