INTRODUCTION

PORTFOLIO MANAGEMENT
Portfolio management is a tool provides some basic benefits such as giving a holistic
view of the various investments and the alignment of the investments with the long
term goals of the individual. However Portfolio is one of the most challenging jobs
and therefore isn't easy. Portfolio Management can help you gain control of your
investments and deliver some meaningful value to your earnings from the
investments. Portfolio Management takes a holistic view of the overall earning
strategy of the individual.
While managing the investment portfolio; it is important to remember that the riskier
strategic investments should always be balanced with more conservative
investments. The investment mix should be constantly monitored to assess which
investments are on track, and which are the ones that need help and which are the
ones that need to be shut down.
However, the key of successful portfolio management lies in the execution. A strong
portfolio management program can turn any sinking investment around and do the
following:
-Maximize value of investments while minimizing th e risk
-Allow investors to schedule resources more efficiently
-Reduce the number of redundant investments and make it easier to kill loss making
investments.
And of course portfolio management definitely means that you are left with more
money in your pockets. Efficient portfolio management also reduces overall
expenditures by 20% by saving the losses that are otherwise made on loss making
investments.
So far in India, most of the middle class earners have been risk-averse and
therefore park most of their savings in Fixed Deposits and Other Savings
Accounts, though the yield from such investment avenues is very low. However, the
recent trend has been such that more people have been attracted towards
investment in Mutual Funds and Equities. It is in this light that Portfolio Management
Companies have been gaining prominence in India.
LITERATURE
REVIEW
 FINANCIAL PLANNING

Investment means putting your money to work to earn more money. Done
wisely, it can help you meet your financial goals like buying a new house,
paying for a college education, enjoying a comfortable retirement, or whatever
is important to you.

You do not have to be wealthy to be an investor. Investing even a small

amount can produce considerable rewards over the long-term, especially if
you do it regularly. But you need to make decisions about how much you want
to invest and where to invest it. To choose wisely, you need to know the
investment options thoroughly and their relative risk exposures.

NEEDS FINANCIAL PLANNING

Financial planning is necessary for all individuals to achieve their financial

goals. You have to plan your limited resources to avail the maximum benefit
out of them. People should plan their investments to fulfill major needs like:

Financial Protection
Career Building
Asset Purchase
Marriage
Children's Education
Retirement Funding etc

Thus, financial planning is nothing but a holistic approach to meet your life
goals.
THE BEST INVESTMENT OPTION

Choosing the best investment for you depends on your personal

circumstances as well as general market conditions. For example, a good
investment for a long-term retirement plan may not essentially be a good
investment for higher education expenses. In each case, the right investment
is a balance of three things: Liquidity, Safety and Return.

Liquidity - how accessible is your money?

How easily an investment can be converted to cash, since part of your

invested money must be available to cover any financial emergencies.

Safety - what is the risk involved?

The biggest risk is the risk of losing the money you have invested. Another
equally important risk is that your investments will not provide enough growth
or income to offset the impact of inflation, which could lead to a gradual
increase in the cost of living. There are additional risks as well (like decline in
economic growth). But the biggest risk of all is not investing at all.

Return - what can you expect to get back on your investment?

Investments are made for the purpose of generating returns. Safe investments
often promise a specific, though limited return. Those that involve more risk
offer the opportunity to make - or lose - a lot of money.

INVESTMENT STRATEGIES

You can make your own investment picking approach or adopt one after
consulting with financial experts or investment advisors. Whatever method you
use, keep in mind the importance of diversification, or variety in your
investment portfolio and the need for a strategy, or a plan, to guide your
choices.
INVESTMENT APPROACHES

The options you choose to put your money in, reflect the investment strategy
you are using - whether you realize it or not. Most people adopt the following
approaches:-

Conservative
Take only limited risk by concentrating on secure, fixed-income investments
etc.

Moderate
Take moderate risk by investing in mutual funds, bonds,select bluechip equity
shares etc.

Aggressive
Take major risk on investments in order to have high (above-average) returns
like speculative or unpredictable equity shares etc.

INVESTMENT RISK

You take different risks with different types of investments:

Credit Risk

The risk is that the issuer of the security will default, or not repay the principal
amount. Valid for corporate bonds etc.

Liquidity Risk

The risk is that the security is not sellable or tradable in the market, in other
words, your money gets stuck unnecessarily creating an asset-liability
mismatch. Valid for bonds, stocks etc.

Market Risk
The risk is that financial markets are volatile in nature. Volatility means sudden
swings in value-from high to low, or the reverse. The more volatile an
investment is, the more profit or loss you can make, since there can be a big
spread between what you paid and what you sell it for. But you also have to
be prepared for the price to drop by the same amount. Valid for stocks, mutual
funds etc.

Interest Rate Risk

This is part of market risk, which is valid for all market-related debt-based
investments. Depending on the interest rate movement in the economy, the
rates of interest on the investment instruments may go up or come down
resulting in a subsequent reverse movement of their prices, thus creating big
risk in times of economic uncertainty. Valid for bonds, Govt. securities, mutual
funds etc.

Risk vs. Reward

Having understood the basics of mutual funds the next step is to build a
successful investment portfolio. Before you can begin to build a portfolio, one
should understand some other elements of mutual fund investing and how
they can affect the potential value of your investments over the years. The first
thing that has to be kept in mind is that when you invest in mutual funds, 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 of value in your
investment is what is considered risk in investing.
Even so, the opportunity for investment growth that is possible through
investments in mutual funds far exceeds that concern for most investors.
Here's why. At the cornerstone of investing is the basic principal that the
greater the risk you take, the greater the potential reward. Or stated in another
way, you get what you pay for and you get paid a higher return only when
you're willing to accept more volatility.

Risk then, refers to the volatility -- the up and down activity in the markets and
individual issues that occurs constantly over time. This volatility can be caused
by a number of factors -- interest rate changes, inflation or general economic
conditions. It is this variability, uncertainty and potential for loss, that causes
investors to worry. We all fear the possibility that a stock we invest in will fall
substantially. But it is this very volatility that is the exact reason that you can
expect to earn a higher long-term return from these investments than from a
savings account.

Different types of mutual funds have different levels of volatility or

potential price change, and those with the greater chance of losing value are
also the funds that can produce the greater returns for you over time. So risk
has two sides: it causes the value of your investments to fluctuate, but it is
precisely the reason you can expect to earn higher returns. There are very
few perfectly safe havens and those simply don't pay enough to beat inflation
over the long run.
 THE INFLATION DEVIL

Inflation, the rate at which the general level of prices for goods and services
rises, can steadily erode the purchasing power of your income. That is why
you should invest a portion of your savings at a rate higher than the inflation
rate to recover the loss of purchasing power.

This means that over time a rupee will be able to buy a lesser amount of
goods and services. If the inflation rate is 5%, then Rs. 100 worth of goods will
cost Rs. 105 after a year.
 THE VALUE OF RS. 1,00,000 WILL BECOME
INFLATION (% P.A.)
No. of Yrs. 2 3 4 5 6
0 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
5 90,392 85,873 81,537 77,378 73,390
10 81,707 73,742 66,483 59,874 53,862
15 73,857 63,325 54,209 46,329 39,529
20 66,761 54,379 44,200 35,849 29,011
25 60,346 46,697 36,040 27,739 21,291
30 54,548 40,101 29,386 21,464 15,626

THE POWER OF COMPOUNDING

Regardless of where you choose to put your money - cash, stocks,
bonds, or a combination of these - the key to saving for future is to make your
money work for you. This is done through the power of compounding.
Compounding investment earnings is what can make even small investments
become larger given enough time.
You are probably already familiar with the principle of compounding. Money
you put into a bank account earns interest. Then you earn interest on the
money you originally put in, plus on the interest you have accumulated. As the
size of your account grows, you earn interest on a bigger and bigger pool of
money.

The table below shows two different examples.

How much would your money grow when you invest Rs.1,000 per
month over a period of 10, 15, 20, 25, and 30 years.
 How much would your money grow when you invest Rs.1,00,000 once
over a period of 10, 15, 20, 25, and 30 years The real power of compounding
comes with time. The earlier you start saving, the more your money can work
for you. Look at it another way. To attain certain amount of corpus within a set
period of time pro-active investment style is preferable. Thus, no matter how
young you are, the sooner you begin saving for future, the better it is.
 INVESTMENT MANAGEMENT

Investment management, the professional management of various

securities (shares, bonds etc) and other assets (e.g. real estate), to meet
specified investment goals for the benefit of the investors. Investors may be
institutions (insurance companies, pension funds, corporations etc.) or private
investors (both directly via investment contracts and more commonly via
collective investment schemes e.g. mutual funds). The term asset
management is often used to refer to the investment management of
collective investments, whilst the more generic fund management may refer to
all forms of institutional investment as well as investment management for
private investors. Investment managers who specialize in advisory or
discretionary management on behalf of (normally wealthy) private investors
may often refer to their services as wealth management or portfolio
management often within the context of so-called "private banking".

The provision of 'investment management services' includes elements

of financial analysis, asset selection, stock selection, plan implementation and
ongoing monitoring of investments. Investment management is a large and
important global industry in its own right responsible for caretaking of trillions
of dollars, euros, pounds and yen. Coming under the remit of financial
services many of the worlds largest companies are at least in part investment
managers and employ millions of staff and create billions in revenue. Fund
manager (or investment advisor in the U.S.) refers to both a firm that provides
investment management services and an individual(s) who directs 'fund
management' decisions.
THE GLOBAL FUND MANAGEMENT INDUSTRY

Assets of the global fund management industry increased for the third year
running in 2006 to reach a record $55.0 trillion. This was up 10% on the
previous year and 54% on 2002. Growth during the past three years has been
due to an increase in capital inflows and strong performance of equity
markets.

Pension assets totalled $20.6 trillion in 2005, with a further $16.6 trillion
invested in insurance funds and $17.8 trillion in mutual funds. Merrill Lynch
also estimates the value of private wealth at $33.3 trillion of which about a
third was incorporated in other forms of conventional investment
management. The US was by far the largest source of funds under
management in 2005 with 48% of the world total. It was followed by Japan
with 11% and the UK with 7%. The Asia-Pacific region has shown the
strongest growth in recent years. Countries such as China and India offer
huge potential and many companies are showing an increased focus in this
region.

Investment Managers and Portfolio Structures

At the heart of the investment management industry are the managers who
invest and divest client investments.A certified company investment advisor
should conduct an assessment of each client's individual needs and risk
profile. The advisor then recommends appropriate investments.
ASSET ALLOCATION
The different asset classes are stocks, bonds, real-estate, derivatives, and
commodities. The exercise of allocating funds among these assets (and
among individual securities within each asset class) is what investment
management firms are paid for. Asset classes exhibit different market
dynamics, and different interaction effects; thus, the allocation of monies
among asset classes will have a significant effect on the performance of the
fund. Some research suggests that allocation among asset classes has more
predictive power than the choice of individual holdings in determining portfolio
return. Arguably, the skill of a successful investment manager resides in
constructing the asset allocation, and separately the individual holdings, so as
to outperform certain benchmarks (e.g., the peer group of competing funds,
bond and stock indices).

Long-Term Returns
It is important to look at the evidence on the long-term returns to different
assets, and to holding period returns (the returns that accrue on average over
different lengths of investment). For example, over very long holding periods
(eg. 10+ years) in most countries, equities have generated higher returns than
bonds, and bonds have generated higher returns than cash. According to
financial theory, this is because equities are riskier (more volatile) than bonds
which are themselves more risky than cash.

Diversification
Against the background of the asset allocation, fund managers consider the
degree of diversification that makes sense for a given client (given its risk
preferences) and construct a list of planned holdings accordingly. The list will
indicate what percentage of the fund should be invested in each particular
stock or bond. The theory of portfolio diversification was originated by
Markowitz and effective diversification requires management of the correlation
between the asset returns and the liability returns, issues internal to the
portfolio (individual holdings volatility), and cross-correlations between the
returns.

Investment Styles
There are a range of different styles of fund management that the institution
can implement. For example, growth, value, market neutral, small
capitalisation, indexed, etc. Each of these approaches has its distinctive
features, adherents and, in any particular financial environment, distinctive risk
characteristics. For example, there is evidence that growth styles (buying
rapidly growing earnings) are especially effective when the companies able to
generate such growth are scarce; conversely, when such growth is plentiful,
then there is evidence that value styles tend to outperform the indices
particularly successfully.

Performance measurement
Fund performance is the acid test of fund management, and in the institutional
context accurate measurement is a necessity. For that purpose, institutions
measure the performance of each fund (and usually for internal purposes
components of each fund) under their management, and performance is also
measured by external firms that specialise in performance measurement.
The leading performance measurement firms (e.g. Frank Russell in the
USA) compile aggregate industry data e.g showing how funds in general
performed against given indices and peer groups over various time periods. In
a typical case (let us say an equity fund), then the calculation would be made
(as far as the client is concerned) every quarter and would show a percentage
change compared with the prior quarter (e.g. +4.6% total return in US dollars).
This figure would be compared with other similar funds managed within the
institution (for purposes of monitoring internal controls), with performance data
for peer group funds, and with relevant indices (where available) or tailor-
made performance benchmarks where appropriate. The specialist
performance measurement firms calculate quartile and decile data and close
attention would be paid to the (percentile) ranking of any fund. Generally
speaking it is probably appropriate for an investment firm to persuade its
clients to assess performance over a longer periods (e.g. 3 to 5 years) to
smooth out very short term fluctuations in performance and the influence of
the business cycle. This can be difficult however and, industrywide, there is a
serious pre-occupation with short-term numbers and the effect on the
relationship with clients (and resultant business risks for the institutions).
An enduring problem is whether to measure before-tax or after-tax
performance. After-tax represents the benefit to the investor, but investors tax
positions vary. Before tax measurement can mislead, especially in regimens
that tax realised capital gains (and not unrealised). A successful active
manager, measured before tax, can thus produce a miserable after tax result.
One possible solution is to report the after-tax position of some standard tax-
payer.

10 LARGEST ASSET MANAGEMENT COMPANIES (GLOBAL)

Global Investors 2005 top 10 asset managers by assets under

management. (Source: BGI)

Assets under management

Rank Company Country
(US$million)

1. Barclays Global Investors 1,400,491 UK

2. State Street Global Advisors 1,367,269 US

3. Fidelity Investments 1,299,400 US

4. Capital Group Companies 1,050,435 US

5. Legg Mason 891,400 US

6. The Vanguard Group 852,000 US

7. Allianz Global Investors 790,513 Germany

8. JPMorgan Asset Management 782,646 US

9. Mellon Financial Corporation 738,294 US

10. Deutsche Asset Management 723,366 Germany

 SECURITY
A security is a fungible, negotiable interest representing financial value.
Securities are broadly categorized into debt and equity securities. The
company or other entity issuing the security is called the issuer. Securities
may be represented by a certificate or, more typically, by an electronic book
entry interest. Certificates may be bearer, meaning they entitle the holder to
rights under the security merely by holding the security, or registered,
meaning they entitle the holder to rights only if he or she appears on a security
register maintained by the issuer or an intermediary. They include shares of
corporate stock or mutual funds, bonds issued by corporations or
governmental agencies, stock options or other options, limited partnership
units, and various other formal investment instruments that are negotiable and
fungible.

DEBT AND EQUITY

Debt:
Debt securities may be called debentures, bonds, notes or commercial paper
depending on their maturity and certain other characteristics. The holder of a
debt security is typically entitled to the payment of principal and interest,
together with other contractual rights under the terms of the issue, such as the
right to receive certain information. Debt securities are generally issued for a
fixed term and redeemable by the issuer at the end of that term. Debt
securities may be protected by collateral or may be unsecured, and, if they are
unsecured, may be contractually "senior" to other unsecured debt meaning
their holders would have a priority in a bankruptcy of the issuer. Debt that is
not senior is "subordinated.
Corporate Bonds represent the debt of commercial or industrial entities.
Debentures have a long maturity, typically at least ten years, whereas notes
have a shorter maturity. Commercial paper is a simple form of debt security
that essentially represents a post-dated check with a maturity of not more than
270 days.

Money market instruments are short term debt instruments that may have
characteristics of deposit accounts, such as certificates of deposit, and certain
bills of exchange. They are highly liquid and are sometimes referred to as
"near cash". Commercial paper is also often highly liquid.

Euro debt securities are securities issued internationally outside their

domestic market in a denomination different from that of the issuer's domicile.
They include eurobonds and euronotes. Eurobonds are characteristically
underwritten, and not secured, and interest is paid gross. A euronote may
take the form of euro-commercial paper (ECP) or euro-certificates of deposit.

Government bonds are medium or long term debt securities issued by

sovereign governments or their agencies. Typically they carry a lower rate of
interest than corporate bonds. In addition to serving as a source of finance for
governments. U.S. federal government bonds are called treasuries. Because
of their liquidity and perceived low risk, treasuries are used to manage the
money supply in the open market operations of non-US central banks.

Sub-sovereign government bonds, known in the U.S. as municipal bonds,

represent the debt of state, provincial, territorial, municipal or other
governmental units other than sovereign governments.

Supranational bonds represent the debt of international organizations such

as the World Bank, the International Monetary Fund, regional multilateral
development banks and others.
Equity:
An equity security is a share in the capital stock of a company (typically
common stock, although preferred equity is also a form of capital stock). The
holder of an equity is a shareholder, owning a share, or fractional part of the
issuer. Unlike debt securities, which typically require regular payments
(interest) to the holder, equity securities are not entitled to any payment. In
bankruptcy, they share only in the residual interest of the issuer after all
obligations have been paid out to creditors. However, equity generally entitles
the holder to a pro rata portion of control of the company, meaning that a
holder of a majority of the equity is usually entitled to control the issuer.

Equity also enjoys the right to profits and capital gain, whereas holders of debt
securities receive only interest and repayment of principal regardless of how
well the issuer performs financially. Furthermore, debt securities do not have
voting rights outside of bankruptcy. In other words, equity holders are entitled
to the "upside" of the business and to control the business.

HYBRID:
Hybrid securities combine some of the characteristics of both debt and equity
securities.
Preference shares form an intermediate class of security between equities
and debt. If the issuer is liquidated, they carry the right to receive interest
and/or a return of capital in priority to ordinary shareholders. However, from a
legal perspective, they are capital stock and therefore may entitle holders to
some degree of control depending on whether they contain voting rights.

Convertibles are bonds or preferred stock which can be converted, at the

election of the holder of the convertibles, into the common stock of the issuing
company. The convertibility, however, may be forced if the convertible is a
callable bond, and the issuer calls the bond. The bondholder has about 1
month to convert it, or the company will call the bond by giving the holder the
call price, which may be less than the value of the converted stock. This is
referred to as a forced conversion.
Equity warrants are options issued by the company that allows the holder of
the warrant to purchase a specific number of shares at a specified price within
a specified time. They are often issued together with bonds or existing
equities, and are, sometimes, detachable from them and separately tradable.
When the holder of the warrant exercises it, he pays the money directly to the
company, and the company issues new shares to holder.

Warrants, like other convertible securities, increases the number of

shares outstanding, and are always accounted for in financial reports as fully
diluted earnings per share, which assumes that all warrants and convertibles
will be exercised.
 RESEARCH
METHODOLOGY
OBJECTIVES OF THE STUDY

Understanding the significance of Investment/Portfolio Management;

Identifying the instruments available in the market for making

investments by the individuals;

Comparative analysis of making investments by oneself and through

Professionals;

Model portfolios for individuals as per Age, Income Level and

Requirements.
 RESEARCH
METHODOLOGY

Significance of the Study:

The study signifies Portfolio Management as an important and

emerging way of making wise investments. The report highlights the
requirement of suitable portfolios and its benefits for the individual
investors.

Data Collection Method:

In this survey, I have used secondary data for collecting

information because there is a better scope of getting the
required information.

Research Design:

Research Design :
Data Type : Secondary Data
FINDINGS
&
ANALYSIS
 THE SECURITIES MARKET IN INDIA

The public securities markets can be divided into primary and secondary
markets. The distinguishing difference between the two markets is that in the primary
market, the money for the securities is received by the issuer of those securities from
investors, whereas in the secondary market, the money goes from one investor to the
other. When a company issues public stock for the first time, this is called an Initial
Public Offering (IPO). A company can later issue more new shares, or issue shares
that have been previously registered in a shelf registration. These later new issues are
also sold in the primary market, but they are not considered to be an IPO. Issuers
usually retain investment banks to assist them in administering the IPO, getting SEC
approval, and selling the new issue. When the investment bank buys the entire new
issue from the issuer at a discount to resell it at a markup, it is called an underwriting,
or firm commitment. However, if the investment bank considers the risk too great for
an underwriting, it may only assent to a best effort agreement, where the investment
bank will simply do its best to sell the new issue.

In order for the primary market to thrive, there must be a secondary market, or
aftermarket, where holders of securities can sell them to other investors for cash,
hopefully at a profit. Otherwise, few people would purchase primary issues, and, thus,
companies and governments would be unable to raise money for their operations.
Organized exchanges constitute the main secondary markets. Many smaller issues and
most debt securities trade in the decentralized, dealer-based over-the-counter markets.

In Europe, the principal trade organization for securities dealers is the

International Capital Market Association. In the U.S., the principal organization for
securities dealers is the Securities Industry and Financial Markets Association. The
Bond Market Association represents bond dealers globally.
Public Offer and Private Placement

In the primary markets, securities may be offered to the public in a public offer.
Alternatively, they may be offered privately to a limited number of qualified persons
in a private placement. Often a combination of the two is used. The distinction
between the two is important to securities regulation and company law. Privately
placed securities are often not publicly tradable and may only be bought and sold by
sophisticated qualified investors. As a result, the secondary market is not as liquid.

OTHER INVESTMENT OPTIONS AVAILABLE WITH INVESTORS

Post Office Schemes

These schemes are offered by the Government of India.

Safe, secure and risk-free investment options.
No Tax Deduction at Source (TDS).
Nomination facility is available.
Nomination can be changed at any time
The instruments are transferable to any Post Office anywhere in India.
Attractive rates of interest.
Post Office Schemes:

Post Office Monthly Income Scheme

Post Office Time Deposit Scheme
Post Office Savings Account
National Savings Certificate
Kisan Vikas Patra

Government schemes also offered through Post Offices:

Public Provident Fund

Senior Citizen's Savings Scheme
 Insurance

Insurance is a cover against uncertainties like death, accidents, and financial losses
etc. It also serves as an effective investment and tax saving tool. Life Insurance is a
contract by which you can protect yourself against specific losses by paying a
premium over a period of time. Since each one of us, during our lives are faced with
numerous risks - failing health, financial losses, accidents and even fatalities, our
instinct drives us to cover ourselves against those risks. Though an insurance cover
can't protect you against the emotional losses arising out of these risks, it softens the
economic crisis that usually accompanies these losses.

Why Do I Need Life Insurance?

Simply put, life brings with it many surprises, both pleasant and unpleasant. By taking
a Life Insurance Plan one can ensure that he / she is better prepared to face
uncertainties in number of ways.

Advantages of Life Insurance?

Protection
Most importantly, we need life insurance to protect the people we love, taking care
that our family has a means to look after itself after we are gone. In a nutshell, it is to
protect the economic value of a human life for the benefit of those financially
dependent on him.

Savings and Investments

Insurance is also a means to Save and Invest. The periodic premiums are like savings
and you are assured of a lump sum amount on maturity. A policy can come in really
handy at the time of your child's education or marriage. Besides, it can be used as
supplemental retirement income.

Tax Benefits
Life insurance is one of the best tax saving options today. Your tax can be saved twice
on a life insurance policy-once when you pay your premiums and once when you
receive maturity benefits. Money saved is money earned!

Company Fixed Deposits

Fixed Deposits in companies that earn a fixed rate of return over a period of time
are called Company Fixed Deposits. Financial institutions and Non-Banking Finance
Companies (NBFCs) also accept such deposits. Deposits thus mobilised are governed
by the Companies Act under Section 58A. These deposits are unsecured, i.e., if the
company defaults, the investor cannot sell the documents to recover his capital, thus
making them a risky investment option.

Benefits of investing in Company Fixed Deposits

High Interest.

No deduction of Income Tax at source up to Rs 5,000 p.a.

Short-term deposits.

Lock-in period is only 6 months.

No Income Tax is deducted at source if the interest income is up to Rs 5,000 in one

financial year

Investment can be spread in more than one company, so that interest from one
company does not exceed Rs. 5,000.

Real Estate
 Real estate or immovable property is a legal term (in some jurisdictions) that
encompasses land along with anything permanently affixed to the land, such as
buildings. Real estate (immovable property) is often considered synonymous with real
property (also sometimes called realty), in contrast with personal property (also
sometimes called chattel or personalty). However, for technical purposes, some
people prefer to distinguish real estate, referring to the land and fixtures themselves,
from real property, referring to ownership rights over real estate

THE ROUTE OF MUTUAL FUNDS

Mutual Funds

What are Mutual Funds?

A Mutual Fund is a trust that pools together the savings of a number of investors who
share a common financial goal. The fund manager invests this pool of money in
securities -- ranging from shares and debentures to money market instruments or in a
mixture of equity and debt, depending upon the objectives of the scheme.

Investing in Mutual Funds offers several benefits:

Professional expertise:

Fund managers are professionals who track the market on an on-going basis. With
their mix of professional qualification and market knowledge, they are better
placed than the average investor to understand the markets.

Diversification:

Since a Mutual Fund scheme invests in number of stocks and/or debentures, the
associated risks are greatly reduced.

Relatively Less Expensive:

When compared to direct investments in the capital market, Mutual Funds cost
less. This is due to savings in brokerage costs, demat costs, depository costs etc.
 Liquidity:

Investments in Mutual Funds are completely liquid and can be redeemed at their
Net Assets Value-related price on any working day.

Transparency:

You will always have access to up-to-date information on the value of your
investment in addition to the complete portfolio of investments, the proportion
allocated to different assets and the fund managers investment strategy.

Flexibility:

Through features such as Systematic Investment Plans, Systematic Withdrawal

Plans and Dividend Investment Plans, you can systematically invest or withdraw
funds according to your needs and convenience.

SEBI regulated market:

All Mutual Funds are registered with SEBI and function within the provisions and
regulations that protect the interests of investors. AMFI is the supervisory body of
the Mutual Funds industry.

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organisational
set up of a mutual fund:

Organisation of a Mutal Fund

 MUTUAL FUND SCHEMES

Wide variety of Mutual Fund Schemes exist to cater to the needs such as financial
position, risk tolerance and return expectations etc. The table below gives an overview
into the existing types of schemes in the Industry.

Mutual Fund Terms

* Net Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities.
The per unit NAV is the net asset value of the scheme divided by the number of units
outstanding on the Valuation Date.

* Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may
include a sales load.

* Repurchase Price

Is the price at which a close-ended scheme repurchases its units and it may include a
back-end load. This is also called Bid Price.

* Redemption Price

Is the price at which open-ended schemes repurchase their units and close-ended
schemes redeem their units on maturity. Such prices are NAV related.

* Sales Load or Entry Load

Is a charge collected by a scheme when it sells the units. Also called, Front-end load.
Schemes that do not charge a load are called No Load schemes.

* Repurchase or Exit Load

Is a charge collected by a scheme when it buys back the units from the unit holders.

How to Choose the Right Mutual Fund Scheme

Once you are comfortable with the basics, the next step is to understand your
investment choices, and draw up your investment plan relevant to your requirements.
Choosing your investment mix depends on factors such as your risk appetite, time
horizon of your investment, your investment objectives, age, etc.

What should be kept in mind before investing in Mutual Funds?

Mutual Fund investment decisions require consistent effort on the part of the investor.
Before investing in Mutual Funds, the following steps must be given due weightage to
decide on the right type of scheme:

1. Identifying the investment objective;

2. Selecting the right scheme category;
3. Selecting the right mutual fund;
4. Evaluating the Portfolio.
A) Identifying the Investment Objective

Your financial goals will vary, based on your age, lifestyle, financial independence,
family commitments, level of income and expenses, among many other factors.
Therefore, the first step is to assess you needs. Begin by asking yourself these simple
questions:

Why do I want to invest?

The probable answers could be:
"I need a regular income"
"I need to buy a house/finance a wedding"
"I need to educate my children," or
A combination of all the above

How much risk am I willing to take?

The risk-taking capacity of individuals vary depending on various factors. Based on

their risk bearing capacity, investors can be classified as:

Very conservative

Conservative

Moderate

Aggressive

Very Aggressive

What are my cash flow requirements?

For example, you may require:

A regular Cash Flow
A lump sum after a fixed period of time for some specific need in the future
Or, you may have no need for cash, but you may want to create fixed assets for the
future

B) Selecting the scheme category

The next step is to select a scheme category that matches your investment objectives:
 For Capital Appreciation go for equity sectoral funds, equity diversified funds or
balanced funds.
For Regular Income and Stability you should opt for income funds/MIPs
For Short-Term Parking of Funds go for liquid funds, floating rate funds, short-
term funds.
For Growth and Tax Savings go for Equity-Linked Savings Schemes.

Investment Objective Investment horizon Ideal Instruments

Short-term Investment 1- 6 months Liquid/Short-term plans
Diversified Equity/ Balanced
Capital Appreciation Over 3 years
Funds
Monthly Income Plans / Income
Regular Income Flexible
Funds
Equity-Linked Saving Schemes
Tax Saving 3 yrs lock-in
(ELSS)

C) Selecting the right Mutual fund

Once you have a clear strategy in mind, you now have to choose which Mutual
fund and scheme you want to invest in. The offer document of the scheme tells you its
objectives and provides supplementary details like the track record of other schemes
managed by the same Fund Manager. Some important factors to evaluate before
choosing a particular Mutual Fund are:

The track record of performance over that last few years in relation to the
appropriate yardstick and similar funds in the same category.
How well the Mutual Fund is organized to provide efficient, prompt and
personalized service.
The degree of transparency as reflected in frequency and quality of their
communications.

D) Evaluation of portfolio
 Evaluation of equity fund involve analysis of risk and return, volatility,
expense ratio, fund managers style of investment, portfolio diversification, fund
managers experience. Good equity fund should provide consistent returns over a
period of time. Also expense ratio should be within the prescribed limits. These days
fund house charge around 2.50% as management fees.

Evaluation of bond funds involve it's assets allocation analysis, return's consistency,
its rating profile, maturity profile, and its performance over a period of time. The
bond fund with ideal mix of corporate debt and gilt fund should be selected.
 SNAPSHOT OF MUTUAL FUND SCHEMES

Mutual
Investment Who should Investment
Fund Objective Risk
Portfolio invest horizon
Type
Treasury Bills, Those who park
Liquidity +
Certificate of their funds in
Money Moderate Income +
Negligible Deposits, current accounts 2 days - 3 weeks
Market Reservation of
Commercial or short-term
Capital
Papers, Call Money bank deposits
Short-term Call Money,
Funds Commercial
Those with
(Floating - Liquidity + Little Interest Papers, Treasury 3 weeks -
surplus
short-term) Moderate Income Rate Bills, CDs, Short- 3 months
short-term funds
term Government
securities.
Predominantly
Bond Funds
Credit Risk & Debentures, Salaried &
More than 9 - 12
Regular Income Interest Rate Government conservative
(Floating - months
Risk securities, investors
Long-term) Corporate Bonds
Salaried &
Interest Rate Government 12 months &
Gilt Funds Security & Income conservative
Risk securities more
investors
Aggressive
Equity Long-term Capital investors with
High Risk Stocks 3 years plus
Funds Appreciation long term out
look.
To generate returns
that are NAV varies with Portfolio indices
Aggressive
Index Funds commensurate with index like BSE, NIFTY 3 years plus
investors.
returns of respective performance etc
indices
Balanced ratio of
Capital Market equity and debt
Balanced Growth & Regular Moderate &
Risk and Interest funds to ensure 2 years plus
Funds Income Aggressive
Risk higher returns at
lower risk
 INDIAN ASSET MANAGEMENT COMPANIES
In India, generally the mutual fund houses render the service of portfolio management or
investment management. These fund houses are also called the Asset Management Companies.
There are many other private small firms or companies that give advisory services or
consultancy, but here we have taken only the big MFs since it is very difficult to gather data
about the small ones.

The origin of the Indian mutual funds industry dates back to 1963 when the
Unit Trust of India (UTI) came into existence at the initiative of the Government of
India and the Reserve Bank of India. Since then the mutual funds sector remained the
sole fiefdom of UTI till 1987 when a slew of non-UTI, public sector mutual funds
were set up by nationalized banks and life insurance companies.

The year 1993 saw sweeping changes being introduced in the mutual fund industry
with private sector fund houses making their debut and the laying down of
comprehensive mutual fund regulations. Over the years, the Indian mutual funds
industry has witnessed an exponential growth riding piggyback on a booming
economy and the arrival of a horde of international fund houses.

Here is a list of top Indian mutual funds:

ABN Amro Mutual Fund LIC Mutual Fund

Alliance Capital Mutual Fund
Bank of Baroda Mutual Fund
Benchmark Mutual Fund
Birla Sunlife Mutual Fund
Canbank Mutual Fund
DBS Chola Mutual Fund
Deutsche Asset Management
Morgan Stanley Mutual Fund
Principal Mutual Fund
Prudential ICICI Mutual Fund
Reliance Mutual Fund
Sahara Mutual Fund
SBI Mutual Fund
Standard Chartered Mutual Fund

DSP Merryll Lynch Sundaram BNP Paribas

 Escorts Mutual Fund Tata Mutual Fund
Fidelity Mutual Fund UTI Mutual Fund
Franklin Templeton Mutual Fund
GIC Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ING Vysya Mutual Fund
Kotak Mahindra Mutual Fund

ABN AMRO MUTUAL FUND

ABN AMRO mutual fund is promoted by the ABN AMRO banking group, one of the
banking giants in the world with an asset base of over $500 billion. ABN AMRO
Asset Management, a subsidiary of ABN AMRO, manages the investment
management business of the group. ABN AMRO Asset Management is one of the
world's leading asset management companies with more than 70 years of experience
in managing money for individual customers and institutional clients.

ABN AMRO Asset Management (India) Limited is the AMC to the ABN AMRO
mutual fund. ABN AMRO Bank NV holds 75 per cent stake in the AMC. As of Aug
2006, the fund has assets of over Rs.4,176 crore under management.

Here is a list of mutual funds of ABN AMRO:

Equity Schemes
ABN AMRO Equity Fund
ABN AMRO Opportunities Fund
ABN AMRO Dividend Yield Fund
ABN AMRO Tax Advantage Plan (ELSS)
ABN AMRO Future Leaders Fund

Fund of Funds Scheme

ABN AMRO Multi Manager Fund
ABN AMRO Multi Manager Fund - Series 2A

Income Schemes
ABN AMRO Monthly Income Plan
ABN AMRO Flexi Debt Fund
ABN AMRO Long Term Floating Rate Fund
ABN AMRO Fixed Term Plan - Series 1
ABN AMRO Fixed Term Plan - Series 2: Thirteen Month Plan
ABN AMRO Fixed Term Plan - Series 2 : Half Yearly Plan A
ABN AMRO Fixed Term Plan - Series 2 : Quarterly Plan D
ABN AMRO Fixed Term Plan - Series 2 : Quarterly Plan E
ABN AMRO Fixed Term Plan - Series 3 : Quarterly Plan A
ABN AMRO Fixed Term Plan - Series 3 : Yearly Plan
ABN AMRO Fixed Term Plan - Series 3 : Quarterly Plan B
ABN AMRO Fixed Term Plan - Series 3 : Quarterly Plan C

LIQUID SCHEMES
ABN AMRO Floating Rate Fund
ABN AMRO Cash Fund
ALLIANCE CAPITAL MUTUAL FUND

Alliance Capital Mutual Fund was setup on December 30, 1994

with Alliance Capital Management Corp. of Delaware (USA) as
sponsorer. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the Alliance
Capital Asset Management India (Pvt) Ltd. with the corporate office in Mumbai.

BANK OF BARODA MUTUAL FUND

Bank of Baroda (BOB) is one of the leading nationalized banks to

foray into the mutual fund segment. BOB Asset Management
Company Limited, a wholly owned subsidiary of BOB, is the investment manager of
BOB Mutual Fund and was incorporated on November 5, 1992.

Here is a list of mutual funds of Bank of Baroda:

BOB Diversified Fund
BOB ELSS 96
BOB ELSS 97
BOB INCOME FUND
BOB GILT FUND
BOB LIQUID FUND
BOB BALANCE FUND
BOB GROWTH FUND
BOB GILT FUND PF PLAN
BOB MIP FUND
BOB CHILDREN FUND
BENCHMARK MUTUAL FUND
The objective of Benchmark Mutual Fund is to provide low cost
innovative products that enhance returns at acceptable levels of
risk. To attain this objective we plan to employ "Quantitative
Techniques" to investing. Quantitative Techniques captures the
massive amounts of financial information, analyzing and transforming it to develop
disciplined and rigorous models to investing. With the rapidly increasing availability
of online information, computational power growing exponentially, Quantitative
Techniques to investing is already a significant phenomenon globally and is growing
rapidly.
Initially, we plan to introduce to investors, the benefits of index strategies. Over a
period of time we plan to introduce other value-added products, which apply
quantitative techniques covering all asset classes.
Benchmark mutual fund specializes in exchange traded funds (ETF). Benchmark
Asset Management Company Private Limited is the investment manager to the
mutual fund.

Here is a list of mutual funds of Benchmark:

Nifty BeES
Junior BeES
Liquid BeES
Bank BeES
Derivative Fund
Split Capital Fund
 BIRLA SUNLIFE MUTUAL
FUND

Birla Sun Life Asset Management Company Ltd.

(BSLAMC), the investment managers of Birla Mutual
Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial
Services Inc. of Canada. The joint venture brings together the Aditya Birla Groups'
experience in the Indian market and Sun Life's global experience.

Since its inception in 1994, Birla Mutual Fund has emerged as one of India's leading
Mutual Funds with over Rs. 16,500 crores * of assets under management and an
investor base in excess of 8 lakhs. The fund offers a range of investment options,
which include diversified and sector specific equity schemes, fund of fund schemes,
hybrid and monthly income funds, a wide range of debt and treasury products and
offshore funds.

BSLAMC is the first asset management company in India to be awarded the coveted
ISO 9001:2000 certification by DNV, Netherlands. BSLAMC also provides private
Wealth Management services.

BSLAMC follows a long-term, fundamental research based approach to investment.

The approach is to identify companies, which have excellent growth prospects and
strong fundamentals. The fundamentals include the quality of the companys
management, sustainability of its business model and its competitive position,
amongst other factors. Birla Sun Life Asset Management Company has one of the
largest team of research analysts in the industry, dedicated to tracking down the best
companies to invest in.

Birla Sun Life AMC strives to provide transparent, ethical and research-based
investments and wealth management services.

Birla Sunlife Mutual Fund is one of India's leading mutual funds with assets of over
Rs.17,098 crore under management as of Aug 2006. Birla Sun Life Asset
Management Company Limited, the investment manager of Birla Sunlife Mutual
Fund, is a joint venture between the Aditya Birla Group and Sun Life Financial
Services, leading international financial services organization.

Established in 1994, Birla Sunlife AMC provides investors a range of 18

investment options, which include diversified and sector specific equity schemes, a
wide range of debt and treasury products, and two offshore funds. Both the sponsors
have equal stakes in the AMC. In recognition to its high quality investment products,
Birla Sun Life AMC became India's first asset management company to be awarded
the coveted ISO 9001:2000 certification by DNV Netherlands.

Here is a list of mutual funds of Birla Sunlife:

Equity
Birla Long Term Advantage Fund
Birla Advantage Fund
Birla Dividend Yield Plus
Birla Equity Plan
Birla Index Fund
Birla India Opportunities Fund
Birla Midcap Fund
Birla MNC Fund
Birla Tax Plan 98
Birla India GenNext Fund
Birla Top 100 Fund
Birla Infrastructure Fund
Birla Sun Life Tax Relief'96
BSL-New Millennium Fund
BSL - Equity Fund
BSL - Buy India Fund
BSL - Basic Industries Fund
BSL - Frontline Equity Fund
Debt Schemes
Birla Floating Rate Fund
Birla Cash Plus
Birla Income Plus
Birla Gilt Plus
Birla FMP
Birla Bond Index Fund
Birla Dynamic Bond Fund
Birla Fixed Term Debt Fund Series 1
Birla Fixed Term Debt Fund Series 2
Birla Fixed Term Debt Fund Series 3

Birla Sun Life - Cash Manager

Birla Sun Life Income Fund
Birla Sun Life - Monthly Income
Birla Sun Life - Short Term Fund
BSL - Govt. Securities Fund (LTP)
 Canara Bank made its foray into the mutual fund sector by establishing
the mutual fund arm Canbank Mutual Fund in December, 1987. Canara Bank, one of
the largest public sector banks in the country, is also the sponsor of the fund. Canbank
Investment Management Services Limited, a wholly owned subsidiary of the bank,
functions as the AMC to the fund. The operations of the AMC are headed by N R
Ramanujam, managing director. As of Aug 2006, the fund has assets of over Rs.3,246
crore under management.

Here is a list of mutual funds of Canara Bank:

Open Ended Growth Schemes

Canindex
Canexpo
Canequity Diversified
Canemerging equities
Caninfrastructure

Open Ended Balanced Schemes : Canbalance

Open Ended Income Schemes
Cancigo
Canincome
Canshort Term plan
CanFloating scheme

Open Ended Gilt Scheme : Cangilt (PGS)

Open Ended ELSS Scheme : Canequity Taxsaver
Open Ended Liquid Scheme: Canliquid
Close Ended Glit Scheme : Cangilt
Schemes Taken Over From GIC Mutual Fund
Cholamandalam AMC Limited (CAMC) is an asset management company, which
offers mutual funds to retail and institutional investors. The company was set up in
1996, as a joint venture with Cazenove Investment Management of

the UK. In 2001, the Murugappa Group acquired Cazenoves stake in the company;
today CAMC is a subsidiary of CIFCL. CAMC is known for its prudent philosophy
in fund-management. DBS Chola Triple Ace, Indias first AAAf-rated mutual fund
scheme, has not only retained its rating since inception, but also has a consistent
track record of dividend payments. Based in Mumbai, CAMC manages over
Rs.1000 crores of assets.

Cholamandalam Financial Services Group A Profile

Cholamandalam Financial Services Group (Cholamandalam FSG) is a pan-

Indian, composite financial services provider. Cholamandalam FSG comprises the
parent company, Cholamandalam Investment & Finance Company Limited, and its
subsidiaries and associates.Incorporated in 1978, Cholamandalam Investment &
Finance Company Limited (CIFCL) began operations as a Non Banking Finance
Company (NBFC) offering equipment finance to small and medium sized companies
in South India. Today, CIFCL is one of Indias largest domestically owned NBFCs
with a gross asset base (including securitised assets) of over Rs.1500 crores. CIFCL
offers vehicle finance, capital market finance and fixed deposits.

CIFCL offers finance for a wide range of vehicles HCVs, LCVs, cars, MUVs, two-
wheelers, three-wheelers and tractors. The company operates from over 160 locations
from Jalandhar to Trivandrum. The company has built up a portfolio of high quality,
as reflected in its NPAs being among the lowest in the industry at less than 1% of
assets.

As of Aug 2006, the fund has assets of over Rs.2,293 crore under management.
Cholamandalam Distribution Services Limited (CDSL) is in the business of
distribution of a wide array of financial services products both in-house and third
party to corporate, high-net-worth and retail clients. Products offered include mutual
funds, fixed income, life insurance and home loans. The company combines reach in
over 21 cities with richness of its investment advisory services. Established in 2000,
the company already mobilizes over Rs.1000 crores of investments in a year.

Cholamandalam Securities Limited (C-Sec) is a securities brokerage firm offering

stock broking and equity research services to institutional investors, including many of
the largest mutual funds in India, and to select individual clients. C-Sec is a member
of Bombay Stock Exchange and National Stock Exchange. It is also a depository
participant with NSDL. Cholamandalam AXA Risk Services Limited (CARSL) offers
risk advisory services to corporates in India and abroad.The shares of CIFCL are listed
in the Mumbai (BSE) and National (NSE) Stock Exchanges.

Here is a list of mutual funds of DBS Chola:

Debt Funds
DBS Chola Triple Ace
DBS Chola Freedom Income - Short Term Fund
DBS Chola Liquid Fund
DBS Chola Floating Rating Fund
DBS Chola GILT Investment Plan
DBS Chola Short Term Floating Rate Fund

Equity Fund
DBS Chola Opportunities Fund

DBS Chola Midcap Fund

DBS Chola Growth Fund
DBS Chola Multi Cap Fund
DBS Chola Global Advantage Fund
DBS Chola Tax Saver Fund
DBS Chola Contra Fund
Hybrid Fund
DBS Chola Monthly Income Plan
DBS Chola Income Plus
Deutsche Asset Management, a member of the Deutsche Bank Group, is a leading
financial powerhouse in global asset management. With over 5,000 highly qualified
professionals covering local, regional and global markets in the worlds major
financial centers, we serve clients in 42 countries and manage over EUR 535.66 (USD
633.23) billion in assets (As of 31 March 2006).

Established in 2002, Deutsche Asset Management (DeAM), India covers marketing,

client servicing and fund management. The successive launch in January 2003 of four
products across debt and equity asset classes, witnessed a mobilization of around Rs
500 crores. Building upon this success over the last 3 years, our product portfolio
today consists of 10 domestic fund schemes with assets under management of Rs 3500
crores (As on April 2006).

DWS Investments

DWS Investments has a proud heritage spanning over 50 years in Germany and over
10 years of steady growth in Europe. Today, DWS Investments is the leading mutual
fund company in Germany, capturing over 25% market share

Not only is DWS a leader in terms of size but also in terms of performance. In fact,
weve been voted Germanys top fund manager by Standard & Poors for the past
12 years in a row (1955 - 2006), a feat no other investment company has ever
achieved. The superior quality of DWS funds is recognized by independent fund
rating agencies across all key markets in Europe as well. This success serves as an
excellent foundation to carry over our expertise to the Indian market.

Escorts Mutual Fund was setup on April 15, 1996 with Escorts
Finance Limited as its sponsor. The Trustee Company is Escorts Investment Trust
Limited. Its

AMC was incorporated on December 1, 1995 with the name Escorts Asset
Management Limited.

Here is a list of mutual funds of Escorts:

Escorts Income Plan

Escorts Growth Plan
Escorts Gilt Plan
Escorts Balanced Fund
Escorts Tax Plan

FIDELITY Mutual Fund

Fidelity International Limited, world's largest fund manager
with assets of over $1.2 trillion under management, flagged off its India operations in
April, 2006. Despite the late entry into the Indian mutual fund industry, Fidelity is
expected to change the contours of Indian mutual fund industry with its vast expertise
in managing funds.

Over the years, Fidelity's bottom-up investment approach, innovative spirit and
research backbone of over 480 analysts worldwide has placed it at the helm of the
investments world. Fidelity is the best known brand in the fund management business
and its flagship fund Magellan is probably the best known fund among American
investors.

The sponsor of the Fidelity mutual fund is Fidelity International Investment

Advisors. The AMC of the fund is Fidelity Fund Management Private Limited.
Fidelity International Investment Advisors holds 75 per cent stake in the AMC.

FRANKLIN TEMPLETON INDIA MUTUAL

FUND

Franklin Templeton Investments, global investment

management major, started their India operations in 1996 as Templeton Asset
Management India Pvt. Limited. It flagged off the mutual fund business with the
launch of Templeton India Growth Fund in September 1996.

Over the years, Franklin Templeton has emerged as one of the largest and renowned
mutual funds in the country. Franklin Templeton has over Rs.24,198 crore under
management as of Aug 2006.

Franklin Templeton Asset Management (India) Private Limited acts as the asset
management company with Templeton holding a majority of 75 per cent of the equity.
The fund management is headed by Mark Mobius, who is also a director of the AMC
and one of the best fund managers in the world.

The board of directors of the company has Gregory Johnson, president of Franklin
Templeton USA as its chairman. Deepak Satwalekar of HDFC and Rajan Raheja are
the other prominent members.

Here is a list of the mutual funds of Franklin Templeton:

Diversified Equity Funds

Franklin India Flexi Cap Fund
Franklin India Bluechip Fund
Templeton India Growth Fund
Franklin India Prima Fund
Franklin India Prima Plus
Franklin India Index Fund
Franklin India Opportunities Fund
Templeton India Equity Income Fund
Franklin India Taxshield
Franklin India Taxshield 97/Taxshield 98 and Taxshield 99

Sector Equity Fund

Franklin Infotech Fund
Franklin FMCG Fund
Franklin Pharma Fund
Debt Fund
Templeton India Income Fund
Templeton India Income Builder Account
Templeton India Government Securities Fund
Templeton India Short-Term Income Plan
Templeton Floating Rate Income Fund
Franklin India International Fund
Templeton Monthly Income Plan
FT India Monthly Income Plan
Templeton India Treasury Management Account
Templeton India Money Market Account

Hybrid Funds
Templeton India Children's Asset Plan
FT India Balanced Fund
Templeton India Pension Plan

Fund of Funds
FT India Life Stage Fund of Funds
FT India Dynamic PE Ratio Fund of Funds

GIC MUTUAL FUND

GIC
Mutual Fund, sponsored by General Insurance Corporation of India
(GIC), a Government of India undertaking and the four Public Sector General
Insurance Companies, viz. National Insurance Co. Ltd (NIC), The New India
Assurance Co. Ltd. (NIA), The Oriental Insurance Co. Ltd (OIC) and United India
Insurance Co. Ltd. (UII) and is constituted as a Trust in accordance with the
provisions of the Indian Trusts Act, 1882.

HDFC Mutual Fund

HDFC Mutual Fund was setup on June 30, 2000 with two sponsors
namely Housing Development Finance Corporation Limited and
Standard Life Investments Limited.

The Standard Life Assurance Company was established in 1825 and has considerable
experience in global financial markets. In 1998, Standard Life Investments Limited
became the dedicated investment management company of the Standard Life Group
and is owned 100% by The Standard Life Assurance Company. With global assets
under management of approximately US$126 billion as at May 15, 2003, Standard
Life Investments Limited is one of the world's major investment companies and is
responsible for investing money on behalf of five million retail and institutional
clients worldwide.

The Trustee Company of HDFC Mutual Fund is HDFC Trustee Company Limited
and AMC is HDFC Asset Management Company Limited, incorporated with the
SEBI on December 10, 1999.

The products of HDFC Mutual Fund are as follows:

Equity Funds
Balance Funds
Debt Funds
Apart from this it also provides the following value added services:
 SIP (Systematic Investment Plan)

STP (Systematic Transfer Plan)

SWAP (Systematic Withdrawal Advantage Plan)

Here is a list of mutual funds of HDFC:

Equity Funds:
HDFC Growth Fund
HDFC Long Term Advantage Fund
HDFC Index Fund

HDFC Index Fund Nifty Plan

HDFC Index Fund SENSEX Plan
HDFC Index Fund SENSEX Plus Plan

HDFC Equity Fund

HDFC Capital Builder Fund
HDFC TaxSaver
HDFC Top 200 Fund
HDFC Core & Satellite Fund
HDFC Premier Multi-Cap Fund
HDFC Long Term Equity Fund

Balanced Funds
HDFC Children's Gift Fund Investment Plan
HDFC Children's Gift Fund Savings Plan
HDFC Balanced Fund
HDFC Prudence Fund

HSBC is one of the world's leading banking giants and boasts of a 140-year history in
banking services. HSBC operates in more than 70 countries across the globe and has
assets of over $1.2 trillion on the consolidated group balance sheet. The investment
banking and fund management businesses of the group is handled by HSBC
Investments.

HSBC Asset Management India Private Limited acts as the Asset Management
Company to the HSBC Mutual Fund. HSBC Securities and Capital Markets India
Private Limited, an affiliate of the HSBC group, is the sponsor of the fund and owns
75 percent stake in the AMC.

The AMC is headed by its chairman Niall S Booker, who is also the head of HSBC
Bank in India. The operations of the AMC are headed by Sanjay Prakash, director
and CEO. As of Aug 2006, the fund has assets of over Rs.10,684 crore under
management.

Here is a list of mutual funds of HSBC:

Equity Fund
HSBC Equity Fund
HSBC India Opportunities Fund
HSBC Midcap Equity Fund