A PROJECT REPORT

ON
“A COMPERATIVE STUDY OF MUTUAL FUND”

AT

IDFC ASSET MANAGEMENT COMPANY LTD.

UNDER THE GUIDANCE OF UNDER THE SUPERVISION OF

Mr. ABHISHEK CHOUDHARY Prof. SANTOSH KUMAR YADAV

BRANCH MANAGER MBA DEPARTMENT

IDFC MUTUAL FUND MARWARI COLLEGE RANCHI

RANCHI

SUBMITTED TO: SUBMITTED BY:

MARWARI COLLEGE RANCHI NAVIN KUMAR

DEPARTMENT: MBA REG NO: MCR19930039

ROLL NO: 19MCRMC930039

SPECLIZATION: FINANCE

SESSION: 2019-2021

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 TO WHOM IT MAY CONCERN

This is to certify that NAVIN KUMAR, a student of MBA 3rd semester bearing Roll No.
19MCRMC930039 of MARWARI COLLEGE, RANCHI has successfully completed project for the
partial fulfilment of Master of Business Administration, Session: 2019-2021.

HE has undergone 1 month training in the concerned IDFC Asset Management Co. Ltd. Shop No.
104 & 105, 1st Floor, Satya Ganga Arcade, Ashram Road, Ranchi, Pin: 834001 on the topic “A
COMPERATIVE STUDY OF MUTUAL FUND” in Finance speclization.

Co-Ordinator .....................................................................................................................................................................

(Dept. Of MBA)

External Supervisor .......................................................................................................................................................

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 DECLARATION

I hereby declare that the training project report work entitled “A COMPERATIVE STUDY OF
MUTUAL FUND” through IDFC Mutual Fund, Ranchi.

A special reference to IDFC Asset Management submitted to the Marwari College Ranchi is a
record of an original work done by me under the guidance of Prof. SANTOSH KUMAR YADAV,
Faculty Member of Masters in Business Administration department and this project work is by
me in partial fulfilment of the requirement for the award of degree Masters in Business
Administration.

I am thankful to Mr. ABHISHEK CHOUDHARY (Branch Manager – IDFC MF) and Mr. ABHISHEK
DAS (Internship Coordinator – Investor’s Clinic) who have provided their valuable guidance and
useful suggestions, support which helped me in completing this project.

The finding and conclusion of the report are based on my personal study and experience during
the tenure of my internship.

I also declare that the project has not been submitted nor shall it be submitted in future to any
other university or college or institution for award of any other degree or diploma.

Place: RANCHI Name: NAVIN KUMAR

Date: 16-04-2021 Session: 2019 – 2021

Roll No. : 19MCRMC930039

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 ACKNOWLEDGEMENT

In the present world of cutthroat competition project is likely a bridge between theoretical and
practical working. The satisfaction and euphoria the accompany the successful completion of
work would be incomplete unless I mention the people, as an expression of gratitude, who made
it possible and whose constant guidance and encouragement served as a beacon of light and
crowned our efforts with success. This report would have been impossible but for the support
and guidance that I received from various people at different stages of the project.

My deep sense of gratitude and my sincere thanks to my guide Mr. ABHISHEK CHOUDHARY
(Branch Manager – IDFC MF) and Mr. ABHISHEK DAS (Internship Coordinator – Investor’s Clinic)
for his excellent guidance, encouragement and patience has made possible the successful
completion of this project.

I am extremely indebted Prof. SANTOSH KUMAR YADAV, Faculty Member of Masters in Business
Administration department providing enthusiastic guidance to made project well.

Last but not the least I express my sincere thanks to the entire team for providing me their time
and active co-operation and all who helped my directly or indirectly in this project.

Name: NAVIN KUMAR

Roll No. : 19MCRMC930039

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 PREFACE

It is evidence that work experience is in indispensable part of every professional course. In the
same manner practical training in any organization is a must for each and every individual
management course. This training in any organization is a must for each and every individual
management course. This training gives more knowledge about the present corporate world. It
also helps the individual to improve their skill to extent and assess his personality in corporate
life.

Classroom study is no doubt quite important for gaining theoretical knowledge, but practical
knowledge is equally important for those who wants to improve themselves with their working
environment in any field of study. Thus truth of management studied well.

We generally get theoretical knowledge of management, but this knowledge does not prove to be
adequate. In future, management student have to work in an organization. By merely knowing
theoretical what management is, we are not capable of applying it.

In this project I have dealt with many aspect and theories which is relevant for this topic. I focused
to each aspect as far as possible which was very essential to this report.

NAVIN KUMAR

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 CONTENTS

S. No. Topics Page No.

01. INTRODUCTION 07-17

02. GROWTH OF MUTUAL FUND INDUSTRY IN INDIA 18-19

03. HOW TO INVEST IN MUTUAL FUNDS 20-22

04. DIFFERENT AVENUES OF INVESTMENT 23

05. HOW TO CALCULATE THE VALUE OF MUTUAL FUND 24-28

06. CONCLUSION OF MUTUAL FUNDS 29

07. COMPANY PROFILE 30-33

HISTORY & TIMELINES

08. 34-38

ASSET UNDER MANAGEMENT

09. 39-41

SCHEMES OF IDFC MF
10. 42-43

FINDINGS
11. 44

SUGGESITIONS AND RECOMMENDATION

12. 45

CONCLUSION
13. 46

BIBLIOGRAPHY
14. 47

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7
INTRODUCTION

A mutual fund is an open-end professionally managed investment fund that pools money from
many investors to purchase securities. Mutual funds are "the largest proportion of equity of U.S.
corporations." Mutual fund investors may be retail or institutional in nature. The term is typically
used in the United States, Canada, and India, while similar structures across the globe include
the SICAV in Europe ('investment company with variable capital') and open-ended investment
company (OEIC) in the UK.

Mutual funds are often classified by their principal investments as money market funds, bond or
fixed income funds, stock or equity funds, hybrid funds, or other. Funds may also be categorized
as index funds, which are passively managed funds that match the performance of an index, or
actively managed funds. Hedge funds are not mutual funds as hedge funds cannot be sold to the
general public.

So, how can you, the retail investor, create wealth for yourself by investing through mutual
funds? To answer that, we need to get down to brass tacks–what exactly is a mutual fund?

Very simply, a mutual fund is an investment vehicle that pools in the monies of several investors,
and collectively invests this amount in either the equity market or the debt market, or both,
depending upon the fund’s objective. This means you can access either the equity or the debt
market, or both, without investing directly in equity or debt.

At the end of 2019, mutual fund assets worldwide were $54.9 trillion, according to the
Investment Company Institute. The countries with the largest mutual fund industries are:

01. United States: $26.7 trillion

02. Australia: $5.3 trillion

03. Ireland: $3.4 trillion

04. Germany: $2.5 trillion

05. Luxembourg: $2.2 trillion

06. France: $2.2 trillion

07. Japan: $2.1 trillion

08. Canada: $1.9 trillion

09. United Kingdom: $1.9 trillion

10. China: $1.4 trillion

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

Figure: 1

Savings form an important part of the economy of any nation. With savings invested in various
options available to the people, the money acts as the driver for growth of the country. Indian
financial scene too presents multiple avenues to the investors. Though certainly not the best or
deepest of markets in the world, it has ignited the growth rate in mutual fund industry to provide
reasonable options for an ordinary man to invest his savings.
Investment goals vary from person to person. While somebody wants security, others might give
more weightage to returns alone. Somebody else might want to plan for his child’s education
while somebody might be saving for the proverbial rainy day or even life after retirement. With
objectives defying any range, it is obvious that the products required will vary as well.

Investors earn from a Mutual Fund in three ways:

01. Income is earned from dividends declared by mutual fund schemes from time to time.
02. If the fund sells securities that have increased in price, the fund has a capital gain. This is
reflected in the price of each unit. When investors sell these units at prices higher than
their purchase price, they stand to make a gain.
03. If fund holdings increase in price but are not sold by the fund manager, the fund's unit
price increases. You can then sell your mutual fund units for a profit. This is tantamount to
a valuation gain.

Though still at a nascent stage, Indian MF industry offers a plethora of schemes and serves
broadly all type of investors. The range of products includes equity funds, debt, liquid, gilt and

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balanced funds. There are also funds meant exclusively for young and old, small and large
investors. Moreover, the setup of a legal structure, which has enough teeth to safeguard
investors’ interest, ensures that the investors are not cheated out of their hard-earned money. All
in all, benefits provided by them cut across the boundaries of investor category and thus create
for them, a universal appeal.

Investors of all categories could choose to invest on their own in multiple options but opt for
mutual funds for the sole reason that all benefits come in a package.

CONCEPTUAL FRAMEWORK OF MUTUAL FUND

A mutual fund is constituted as a public trust created under the Indian Trust Act, 1882. SEBI
(mutual fund) regulations, 1996 regulate the structure of the mutual funds in India. As per these
regulations should have the following three-tier structure:

i) Sponsor
ii) Trust/trustee
iii) Asset Management Company

Apart from this mutual fund consist of

Figure 2

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 ➢ Sponsor
SEBI regulations say that a fund sponsor is any person or any entity that can set up a Mutual
Fund to earn money by fund management. This fund management is done through an associate
company which manages the investment of the fund. A sponsor can be seen as the promoter of
the associate company.

➢ Trust
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts
Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.

➢ Trustee
A trustee in the case of Mutual funds is a holding service who has administrative power for
managing the money, property or assets used in mutual funds. The trustee can be an individual
person, member of the board of directors, a company or a bank appointed with the approval of
the SECP. Remember, the Board of Trustees is appointed by the AMC with the approval of SEBI.
But the primary responsibility of the trustee is towards the retail investors of the fund.

➢ Asset Management Company (AMC)

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is
required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset
management company of the Mutual Fund. At least 50% of the directors of the AMC are
independent directors who are not associated with the Sponsor in any manner. The AMC must
have a net worth of at least 10 crore at all times.

➢ Registrar and Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the
Mutual Fund. The Registrar processes the application form, redemption requests and dispatches
account statements to the unit holders. The Registrar and Transfer agent also handles
communications with investors and updates investor records.

➢ Custodian
A custodian is an agent, bank, trust company, or other organization which holds and safeguards
an individual's, mutual funds, or investment company's assets for them.

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ADVANTAGES OF MUTUAL FUND

1. Professional Management
Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyses the performance and prospects of companies
and selects suitable investments to achieve the objectives of the scheme. This risk of default by
any company that one has chosen to invest in, can be minimized by investing in mutual funds as
the fund managers analyze the companies’ financials more minutely than an individual can do as
they have the expertise to do so. They can manage the maturity of their portfolio by investing in
instruments of varied maturity profiles.

2. Diversification
Mutual Funds invest in a number of companies across a broad cross-section of industries and
sectors. This diversification reduces the risk because seldom do all stocks decline at the same
time and in the same proportion. You achieve this diversification through a Mutual Fund with far
less money than you can do on your own.

3. Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad
deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your
time and make investing easy and convenient.

4. Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they
invest in a diversified basket of selected securities. Apart from liquidity, these funds have also
provided very good post-tax returns on year to year basis. Even historically, we find that some of
the debt funds have generated superior returns at relatively low level of risks. On an average
debt funds have posted returns over 10 percent over one-year horizon. The best performing
funds have given returns of around 14 percent in the last one-year period. In nutshell we can say
that these funds have delivered more than what one expects of debt avenues such as post office
schemes or bank fixed deposits. Though they are charged with a dividend distribution tax on
dividend payout at 12.5 percent (plus a surcharge of 10 percent), the net income received is still

12
tax free in the hands of investor and is generally much more than all other avenues, on a post-tax
basis.

5. Low Costs
Mutual Funds are a relatively less expensive way to invest compared to directly investing in the
capital markets because the benefits of scale in brokerage, custodial and other fees translate into
lower costs for investors.

6. Liquidity
In open-end schemes, the investor gets the money back promptly at net asset value related
prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at
the prevailing market price or the investor can avail of the facility of direct repurchase at NAV
related prices by the Mutual Fund. Since there is no penalty on pre-mature withdrawal, as in the
cases of fixed deposits, debt funds provide enough liquidity. Moreover, mutual funds are better
placed to absorb the fluctuations in the prices of the securities as a result of interest rate
variation and one can benefits from any such price movement.

7. Transparency
Investors get regular information on the value of your investment in addition to disclosure on the
specific investments made by your scheme, the proportion invested in each class of assets and
the fund manager's investment strategy and outlook.

8. Flexibility
Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans; you can systematically invest or withdraw funds according to your needs and
convenience.

9. Affordability
A single person cannot invest in multiple high-priced stocks for the sole reason that his pockets
are not likely to be deep enough. This limits him from diversifying his portfolio as well as
benefiting from multiple investments. Here again, investing through MF route enables an
investor to invest in many good stocks and reap benefits even through a small investment.
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund

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because of its large corpus allows even a small investor to take the benefit of its investment
strategy.

10. Choice of Schemes

Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.

11. Well Regulated

All Mutual Funds are registered with SEBI and they function within the provisions of strict
regulations designed to protect the interests of investors. The operations of Mutual Funds are
regularly monitored by SEBI.

12. Tax Benefits

Last but not the least, mutual funds offer significant tax advantages. Dividends distributed by
them are tax-free in the hands of the investor. They also give you the advantages of capital gains
taxation. If you hold units beyond one year, you get the benefits of indexation. Simply put,
indexation benefits increase your purchase cost by a certain portion, depending upon the yearly
cost-inflation index (which is calculated to account for rising inflation), thereby reducing the gap
between your actual purchase cost and selling price. This reduces your tax liability. What’s more,
tax-saving schemes and pension schemes give you the added advantage of benefits under
Section 88. You can avail of a 20 per cent tax exemption on an investment of up to Rs 10,000 in
the scheme in a year.

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DISADVANTAGES OF MUTUAL FUND

Mutual funds are good investment vehicles to navigate the complex and unpredictable world of
investments. However, even mutual funds have some inherent drawbacks. Understand these
before you commit your money to a mutual fund.

1. No assured returns and no protection of capital

If you are planning to go with a mutual fund, this must be your mantra: mutual funds do not offer
assured returns and carry risk. For instance, unlike bank deposits, your investment in a mutual
fund can fall in value. In addition, mutual funds are not insured or guaranteed by any government
body (unlike a bank deposit, where up to Rs 1 lakh per bank is insured by the Deposit and Credit
Insurance Corporation, a subsidiary of the Reserve Bank of India). There are strict norms for any
fund that assures returns and it is now compulsory for funds to establish that they have
resources to back such assurances. This is because most closed-end funds that assured returns in
the early-nineties failed to stick to their assurances made at the time of launch, resulting in losses
to investors. A scheme cannot make any guarantee of return, without stating the name of the
guarantor, and disclosing the net worth of the guarantor. The past performance of the assured
return schemes should also be given.

2. Restrictive gains
Diversification helps, if risk minimization is your objective. However, the lack of investment focus
also means you gain less than if you had invested directly in a single security. Assume, Reliance
appreciated 50 per cent. A direct investment in the stock would appreciate by 50 per cent. But
your investment in the mutual fund, which had invested 10 per cent of its corpus in Reliance, will
see only a 5 per cent appreciation.

3. Taxes
During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent
of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on
the income you receive, even if you reinvest the money you made.

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Various types of Mutual Fund schemes exist to cater to different needs of different people.
Largely there are three types of mutual funds:

01. Equity or Growth Funds

A stock fund, or equity fund, is a fund that invests in stocks, also called equity securities. Stock
funds can be contrasted with bond funds and money funds. Fund assets are typically mainly in
stock, with some amount of cash, which is generally quite small, as opposed to bonds, notes, or
other securities. This may be a mutual fund or exchange-traded fund. The objective of an equity
fund is long-term growth through capital gains, although historically dividends have also been an
important source of total return. Specific equity funds may focus on a certain sector of the
market or may be geared toward a certain level of risk.

Stock funds can be distinguished by several properties. Funds may have a specific style, for
example, value or growth. Funds may invest in solely the securities from one country, or from
many countries. Funds may focus on some size of company, that is, small-cap, large-cap, et
cetera. Funds which involve some component of stock picking are said to be actively managed,
whereas index funds try as well as possible to mirror specific stock market indices.

02. Hybrid Funds

A hybrid fund is an investment fund that is characterized by diversification among two or more
asset classes. These funds typically invest in a mix of stocks and bonds. They may also be known
as asset allocation funds.

A hybrid fund is a classification of mutual fund or ETF that invests in different types of assets or
asset classes to produce a diversified portfolio.

Balanced funds, which hold typically 60% stocks and 40% bonds are a common example of a
hybrid fund.

Blended funds, which mix growth and value stocks, are another hybrid

03. Debt Funds

Debt is the major markets in which people invest their hard-earned money to make profits. The
debt market consists of various instruments which facilitate the buying and selling of loans in

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exchange for interest. Considered to be less risky than equity investments, many investors with a
lower risk tolerance prefer buying in debt securities. However, debt investments offer lower
returns as compared to equity investments. Here, we will explore Debt Funds and talk about
different types of debt funds along with their benefits and a lot more.
Debt funds invest in securities which generate fixed income like treasury bills, corporate bonds,
commercial papers, government securities, and many other money market instruments. All these
instruments have a pre-decided maturity date and interest rate that the buyer can earn on
maturity – hence the name fixed-income securities. The returns are usually not affected by
fluctuations in the market. Therefore, debt securities are considered to be low-risk investment
options.

MUTUAL FUND INVESTMENT STRATIGIES

✓ Systematic Investment Plan (SIP):

SIPs entail an investor to invest a fixed sum of money at regular intervals in MF scheme the
investor has chosen. This may help you gain from any appreciation in the event of upside or
alternatively, average your cost during downside. Seeing the present volatility in the market SIP is
the best option available to the investor due to regular entry into the market which causes rupee
cost averaging and hence covers the volatility.

✓ Systematic Withdrawal Plan (SWPs):

These plans are best suited for people nearing retirement. In these plans investor invest in a
mutual fund scheme and is allowed to withdraw a fixed sum of money at regular intervals to take
care of expenses.

✓ Systematic Transfer Plan (STP):

They allow the investor to transfer on a periodic basis a specified amount from one scheme to
another with in the same fund family meaning two schemes belonging to the same mutual fund.
A transfer will be treated as redemption of units from the scheme from which the transfer is
made.

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 SCOPE OF STUDY

This project provides me with learning insight about mutual fund and also little bit about equity
market. The Mutual fund industry in India comprises of a large number of fund houses and
schemes, however the project is limited to study of a few fund houses and schemes which are
performing well in the current market scenario. The analysis will mainly be carried on mainly by
the data collected from investors and from the internet

The primary research required going to various employees and speaking to relationship managers of
various banks and customers present in Ahmedabad.

The secondary research required exploring research papers, newspapers, magazines, fact sheets of
various funds and their offer documents.

GROWTH OF MUTUAL FUND INDUSTRY IN INDIA

While the Indian mutual fund industry has grown in size by about 320% from March, 1993 (Rs.470
billion) to December, 2010 (Rs.4505 billion) in terms of AUM, the AUM of the sector excluding UTI
has grown over times from Rs.152 billion in March 1999 to $ 148 billion as at March 2008.

Though India is a minor player in the global mutual fund industry, its AUM as a proportion of the
global AUM has steadily increased and has doubled over its levels in 1999.
The growth rate of Indian mutual fund industry has been increasing for the last few years. It was
approximately 0.12% in the year of 1999 and it is noticed 0.50% in 2010 in terms of AUM as
percentage of global AUM.

First Phase 1964-1987

• The Mutual Fund industry in India started in 1963.
• 1st Mutual fund scheme was launched in 1964.
• From a mere AUM of ₹ 25 Crore it scaled to ₹ 6,700 Crore in 1988.

Second Phase 1987-1993

• Entry of public sector mutual funds set up by PSU banks, LIC and General Insurance
Corporation in 1987
• Industry’s AUM stood at ₹ 47,004 Crore by end of 1993

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 Third Phase 1993-2003

• Entry of private sector mutual funds leading to an increase in mutual fund houses
• The SEBI (Mutual Funds) Regulations of 1993 were replaced by a comprehensive set of
regulations in 1996
• By the end of Jan’03, the AUM has skyrocketed to ₹ 121,805 Crore with 33 mutual houses
managing them

Fourth Phase 2003-2014

• This phase is noted as the phase of “consolidation” due to M&As.
• It was also marred by the global melt-down
• The Industry lost 17% of its AUM due to the 2008-09 global crisis.
• In March 2014, the AUM doubled to ₹ 824,250 Crore from ₹ 417,300 Crore in March 2009.

Fifth Phase 2014-Present

• The Industry’s AUM crossed the milestone of ₹ 10 Lakh Crore on 31st May 2014
• In less than 4 years, AUM doubled & crossed ₹ 20 lakh crore in August 2017.
• The Industry AUM currently stands at ₹ 24.25 Lakh Crore spread over 8.38crores folio
accounts across 40+ Mutual Fund houses*

IMPACT OF TECHNOLOGY

Mutual fund, during the last one decade brought out several innovations in their products and is
offering value added services to their investors. Some of the value added services that are being
offered are:
• Electronic fund transfer facility.
• Investment and re-purchase facility through internet.
• Added features like accident insurance cover, med claim etc.
• Holding the investment in electronic form, doing away with the traditional form of unit
certificates.
• Cheque writing facilities.
• Systematic withdrawal and deposit facility.

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ONLINE MUTUAL FUND TRADING

The innovation the industry saw was in the field of distribution to make it more easily accessible
to an ever increasing number of investors across the country. For the first time in India the
mutual fund start using the automated trading, clearing and settlement system of stock
exchanges for sale and repurchase of open-ended de-materialized mutual fund units.

Systematic Investment Plan (SIP) and Systematic Withdrawal Plan (SWP) were options
introduced which have come in very handy for the investor to maximize their returns from their
investments. SIP ensures that there is a regular investment that the investor makes on specified
dates making his purchases to spread out reducing the effect of the short term volatility of
markets. SWP was designed to ensure that investors who wanted a regular income or cash flow
from their investments were able to do so with a pre-defined automated form. Today the SW
facility has come in handy for the investors to reduce their taxes.

HOW TO INVEST IN MUTUAL FUNDS

Step One- Identify your investment needs. 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 your needs.

Step Two- Choose 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 factors to evaluate before choosing a
particular Mutual Fund are:

• The track record of performance over the 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.
• Degree of transparency as reflected in frequency and quality of their communications.

Step Three- Select the ideal mix of Schemes.

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Investing in just one Mutual Fund scheme may not meet all your investment needs. You may
consider investing in a combination of schemes to achieve your specific goals.

The following charts could prove useful in selecting a combination of schemes that satisfy your
needs.

Aggressive Plan
Growth Scheme

Income Scheme

Money market Scheme

Balanced Scheme

Figure 3

This plan may suit

➢ Investor seeking Income & moderate growth.
➢ Investor looking for growth & stability with moderate risk

Conservative Plan

Growth Scheme
Income Scheme
Money Scheme
Balanced Scheme

Figure 4

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Step Four - Invest regularly.

Step Five- Keep your taxes in mind

Step Six- Start early It is desirable to start investing early and stick to a regular investment plan. If
you start now, you will make more than if you wait and invest later. The power of compounding
lets you earn income on income and your money multiplies at a compounded rate of return.

Step Seven-The final step all you need to do now is to get in touch with a Mutual Fund or your
Agent/broker and start investing. Reap the rewards in the years to come. Mutual Funds are
suitable for every kind of investor-whether starting a career or retiring, conservative or risk
taking, growth oriented or income seeking.

What fees and commissions will you pay when you invest in mutual funds?

The fees and commissions you may be charged can vary widely from one fund, and one dealer, to
the next. Some of the charges may be negotiable, but you should make sure that you understand
all of the costs before you invest. There are two main costs to consider – the management and
operating expenses that are charged to the fund each year, and the sales charges (or loads) that
you pay when you buy or sell the fund.

Management and Operating Expenses are expenses paid each year by the fund and include such
things as the manager’s fees, legal and accounting fees, custodial fees and bookkeeping costs.
The Management Expense Ratio (MER) is the percentage of the fund’s average net assets that
these expenses represent. For example, if a $100 million fund has $2 million in costs for the year
its MER will be 2%. MERs can range from under 1% per year for some money market funds to
almost 3% for some equity funds. The higher the MER, the greater the impact on the fund’s
performance and the return to its investors because these expenses are removed before the
value is reported.

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DIFFERENT AVENUES OF INVESTMENT

OPTIONS RETURN RISK LIQUIDITY

Savings account Very low Very low High

Fixed Deposits Low Low Low

Direct Equity Very high return Very high High

Insurance Medium Low Low

Company fixed
deposits Low High Very low

Debentures Low Medium Medium

Bonds Low Low Low

Mutual funds High Medium High

Post office schemes Low Low Low

Government
securities Low Low Low

Real estate High High Low

Currency High High High

Bullion Medium High Medium

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STATEMENT OF PROBLEM

Mutual Funds are Financial intermediaries concern with the mobilizing savings of surplus income
& channelization of these savings in those avenues where there is demand of funds.

The main purpose behind this study of investment preferences in Mutual Funds is to see that how
the investors are employing their resources in a manner to afford, combine benefits to low risks,
steady or consistent returns, high liquidity & capital appreciation through diversification & Expert
Management.

Therefore the activities of mutual funds have both short & long term impact on the savings &
capital market & the national economy. Mutual Funds, thus, assist the process of financial
depending & intermediation.

OBJECTIVES OF THE STUDY

• To study various investment alternatives and in particular investors preference

towards mutual funds.
• To study the preference of investors in today’s scenario (less risk and more return).

• To assess the risk of investors with reference to diversifiable risk & non-
diversifiable risk.
• To study market potentiality of mutual fund among investors.
• To study whether the investors are considering IDFC a better option or not.

HOW TO CALCULATE THE VALUE OF MUTUAL FUND

The investor’s funds are deployed in a portfolio of securities by the fund manager. The value of
these investments keeps changing as the market price of the securities change. Since investors
are free to enter and exit the fund at any time, it is essential that the market value of their
investments is used to determine the price at which such entry and exit will take place. The net
assets represent the market value of assets, which belong to the investors, on a given date.

24
Net Asset Value or NAV of a mutual fund is the value of one unit of investment in the fund, in net
asset terms.

NAV= Net Asset of the scheme / Number of Units Outstanding

Where Net Assets are calculated as:-

(Market value of investment + current assets and other assets + Accrued income – current
liabilities and other liabilities – less accrued expenses) / No. of Units Outstanding as at the NAV
date.

NAV of all schemes must be calculated and published at least weekly for closed – end schemes
and daily for open- end schemes.

The major factors affecting the NAV of a fund are :

• Sale and purchase of securities

• Sale and repurchase of units
• Valuation of assets
• Accrual of income and expenses

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.

How is NAV calculated?

The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted
and the resultant value divided by the number of units in the fund is the fund’s NAV.

Expense Ratio

AMCs charge an annual fee, or expense ratio that covers administrative expenses, salaries, advertising
expenses, brokerage fee, etc. A 1.5% expense ratio means the AMC charges Rs1.50 for every Rs100 in
assets under management. A fund's expense ratio is typically to the size of the funds under

25
management and not to the returns earned. Normally, the costs of running a fund grow slower than
the growth in the fund size - so, the more assets in the fund, the lower should be its expense.

Entry load and an exit load

Entry and exit-load are one of the integral charges linked with MF investments.
Several administrative, operative, distribution expenses in addition to the costs pertaining to
issuance of mutual funds are incurred by mutual fund organizations that is in general passed on
to investors in the form of loads. Simply stated, it is the commission charged for investing in
mutual fund scheme by Asset Management companies (AMCs).

Entry load can be said to be the amount or fee charged from an investor while entering a scheme or
joining the company as an investor. Description: Generally, an entry load is collected to cover costs of
distribution by the company. Different mutual funds houses charge different fees as an entry load.

How is Exit Load Calculated?

Exit Load or Exit Fee is a percentage of the Net Asset Value (NAV) of the mutual fund. The amount
that is left after deducting the Exit Load from the Net Asset Value of the units redeemed is credited to
the investor's account.

How does "entry load" affect the investment returns?

A 2.25% entry load sounds small. But it still bites a chunk off the returns over a long period of
time. For instance, Rs 1 lakh invested directly in the no-load option of an equity fund that grows
at a rate of 15% over a period of 20 years yields around Rs 16.36 lakh against Rs 15.99 lakh that a
load fund would return—a difference of Rs 36,820. This is because even a small sum of 2.25% gets
compounded over the years.

The pinch remains the same even in a systematic investment plan (SIP). As SIPs entail
investments on a regular basis, say every month, you end up paying entry loads on all your
investment installments. Assume you had invested Rs 5,000 in Reliance Vision Fund (RVF) on
January 1, 2003 through a monthly SIP. If you had withdrawn your entire investment after five
years, on December 31, 2007, you would have got back Rs 11.52 lakh in the no-load option and Rs
11.25 lakh in a load option, a difference of a cool Rs 25,914.

26
Are investments in mutual fund units risk-free or safe?

This depends on the underlying instrument that a mutual fund invests in, based on its investment
objectives. Mutual funds that invest in stock market-related instruments cannot be termed “risk-
free or safe” as investment in shares are inherently risky by nature, whereas funds that invest in
fixed-income instruments are relatively safe and those that invest only in government securities
are the safest.

Why Mutual Funds are an investment option?

Firstly, we are not all investment professionals. We go to a doctor when we need medical advice
or a lawyer for legal guidance, similarly mutual funds are investment vehicles managed by
professional fund managers. And unless you rate highly on the Investment IQ Quiz, we
recommend you use this option for investing. Mutual funds are like professional money
managers, however a key factor in their favor is that they are more regulated and hence offer
investors the ability to analyze and evaluate their track record.

Secondly, investing is becoming more complex. There was a time when things were quite simple -
the market went up with the arrival of the first monsoon showers and every year around Diwali.
Since India started integrating with the world (with the start of the liberalization process),
complex factors such as an increase in short-term US interest rates, the collapse of the Brazilian
currency or default on its debt by the Russian government, have started having an impact on the
Indian stock market. Although it is possible for an individual investor to understand Indian
companies (and investing) in such an environment, the process can become fairly time
consuming. Mutual funds (whose fund managers are paid to understand these issues and whose
asset management company invests in research) provide an option of investing without getting
lost in the complexities.

Lastly, and most importantly, mutual funds provide risk diversification: Diversification of a
portfolio is amongst the primary tenets of portfolio structuring (see The Need to Diversify). And a
necessary one to reduce the level of risk assumed by the portfolio holder. Most of us are not
necessarily well qualified to apply the theories of portfolio structuring to our holdings and hence
would be better off leaving that to a professional. Mutual funds represent one such option.

27
 How to select a mutual fund scheme?

What's strategy got to do with selecting a mutual fund? Shouldn't you just go and invest in the
best performing fund? The answer is no. Mutual fund investing requires as much strategic input
as any other investment option. But the advantage is that the strategy here is a natural extension
of your asset allocation plan (use our Asset Allocator to understand what your optimum asset
allocation plan should be, based on your personal risk profile). The following processes are
important to select a mutual fund scheme.

➢ Identify funds whose investment objectives match your asset allocation needs Just
as you would buy a computer that fits your needs and budget, you should choose a mutual fund
that meets your risk tolerance (need) and your risk capacity (budget) levels (i.e. has similar
investment objectives as your own). Typical investment objectives of mutual funds include fixed
income or equity, general equity or sector-focused, high risk or low risk, blue-chips or
turnarounds, long-term or short-term liquidity focus.

➢ Evaluate past performance, look for consistency. Although past performance is no guarantee of
future performance, it is a useful way of assessing how well or badly a fund has performed in
comparison to its stated objectives and peer group. A good way to do this would be to identify
the five best performing funds (within your selected investment objectives) over various periods,
say 3 months, 6 months, one year, two years and three years. Shortlist funds that appear in the
top 5 in each of these time horizons as they would have thus demonstrated their ability to be not
only good but also, consistent performers. .

Are investments in mutual fund units risk-free or safe?

This depends on the instrument mutual fund invests in, based on its investment objectives.
Mutual funds that invest in stock market-related instruments cannot be termed “risk-free or
safe” as investment in shares are inherently risky by nature, whereas funds that invest in fixed-
income instruments are relatively safe and those that invest only in government securities are
the safest.

28
Role of a Fund Manager:

Fund managers are responsible for implementing a consistent investment strategy that reflects
the goals and objectives of the fund. Normally, fund managers monitor market and economic
trends and analyze securities in order to make informed investment decisions.

How are mutual funds regulated?

All Asset Management Companies (AMCs) are regulated by SEBI and or the RBI (in case the AMC
is promoted by a bank). In addition, every mutual fund has a board of directors that represents
the unit holders’ interests in the mutual fund.

CONCLUSION OF MUTUAL FUNDS

Mutual funds are good source of returns for majority of households and it is particularly useful
for the people who are at the age of retirement. However, average investors are still restricting
their choices to conventional options like gold and fixed deposits when the market is flooded with
countless investment opportunities, with mutual funds. This is because of lack of information
about how mutual funds work, which makes many investors hesitant towards mutual fund
investments. In fact, many a times, people investing in mutual funds too are unclear about how
they function and how one can manage them. So the organizations which are offering mutual
funds have to provide complete information to the prospective investors relating to mutual funds.
The government also has to take some measures to encourage people to invest in mutual funds
even though it is offering schemes like Rajiv Gandhi Equity Savings Scheme to the investors. It is
believed that some of these measures could lift the morale of the mutual fund industry which has
been crippled for the last three years.

29
30
 COMPANY PROFILE

Established in 2000, IDFC AMC is one of India’s Top 10 asset managers with an average AUM of
over Rs. 1,20,000 crores as of December 2020, across over 60 Mutual Fund schemes. It has an
experienced investment team with a deep on-the-ground presence in over 46 cities, and
investors across over 375+ cities and towns in India. IDFC AMC is focused on helping savers
become investors and create wealth. To support this objective, the AMC offers a range of
prudently constructed investment products – across equities, fixed income and liquid alternatives
- that aim to provide performance consistent with their well-defined objectives.

Figure 5

OVERVIEW

BACKGROUND

IDFC is the promoter of the IDFC Bank and is registered with Reserve Bank of India as NBFC -
Investments. Besides banking, it also has investments in diverse businesses such as asset
management both public markets and private markets, Institutional Broking and Infrastructure
Debt fund. All these businesses are carried through independent subsidiaries. IDFC holds all these

31
investments under IDFC Financial Holding Company Limited (NOFHC). IDFC is a holding company
of the group. IDFC and IDFC Bank are two listed entities of the group and the rest of the
businesses are conducted through unlisted subsidiaries.

CORPORATE MISSION
Our mission is to create long-term value for all our stakeholders by being a dynamic and customer
centric organization providing banking and other financial services through our subsidiaries.

CORPORATE VISION
We aim to be the most respectable financial service provider that reaches out to millions of
people pan India through various subsidiaries we hold. We aspire to live upto the expectations of
our customers, our people, our investors and society at large.

VALUES
Our core values are influenced by our past, tempered by our present and will shape our future.
They are the amalgm of what we are and what we want to be.

Balance:
We stay balanced by being ambitious but grounded, risk taking yet careful. We not only ideate
but also execute.

Collaboration:
We collaborate by working together, proactively sharing information, ideas and solutions.

Drive:
We are driven with high focus and energy to constantly delight customers.

Honesty:
We are honest, transparent to all stakeholders and deliver what we promise.

32
INVESTMENT OFFERINGS
Equity:
Our offerings are built on a fundamental, research-driven framework. Research ideas are taking
through our proprietary seven-factor investment framework that guides stock selection. Each
investment theme uses a unique combination of weights within this overarching framework,
making our portfolios truly distinct. Risk is managed proactively and prudently through our
portfolio construction and review process, as well as well as through independent, system-based
ongoing monitoring. We offer a diverse range of growth-oriented investment strategies across
market caps, and across themes such as infrastructure or consumption.

Fixed Income:
Our fixed income investment strategies are backed by strong fundamental and macro research,
with a keen eye for quality and consistency. We offer products across both front-end carry
oriented strategies as well as actively managed long-bond or sovereign funds.

Liquid Alternatives:
Our fund house offers AIF – Category III to both Indian and International investors. Hedge funds,
being offered by IDFC AMC under AIF – Category III, are an asset class that aim to have lower
correlation to traditional asset classes, such as long only equities and fixed income and intend to
improve an investor’s overall return per unit of risk.

Investors can participate in the India growth story through diverse and complex trading
strategies that may leverage investments in listed and unlisted derivatives.

At IDFC AMC, we offer a ‘true-to-label’ alternative to both traditional equity and fixed income
funds under the IDFC India Equity Hedge (IEH) Fund umbrella. The objective of the Alternative
Fund is to add diversification and low correlation to existing traditional investments. It is not
meant to replace traditional investments, but to add value to the overall asset allocation mix.
Being an AIF Category III offering, the fund has a minimum ₹1 crore investment requirement
suitable for Ultra High Net Worth Individuals, Family offices, Corporations and Institutions.

Portfolio Management Services (PMS):

As part of our Portfolio Management Services (PMS) offering, IDFC AMC launched in July 2017, a
pioneering initiative in bringing Artificial Intelligence and Machine Learning (ML) techniques in

33
equity fund management. The PMS is a focused portfolio of large and mid-capitalised stocks from
the S&P BSE 200 index stock universe combining ML based investment process with Portfolio
Manager expertise. Under the supervision of an experienced Data Scientist, the ML driven
product has the potential to identify opportunities to generate additional alpha while minimising
risk / volatility of returns.

Figure 6

HISTORY & TIMELINES

Our Group was born out of the need for a specialized financial intermediary for infrastructure.
Incorporated on January 30, 1997 in Chennai, our company was set up on the recommendations
of the 'Expert Group on Commercialization of Infrastructure Projects' under the Chairmanship of
Dr. Rakesh Mohan.

Since then, we have been a leading catalyst for providing private sector infrastructure
development in India. We focus on developing and leveraging our knowledge base in the
infrastructure space to devise and provide appropriate financing solutions to our customers. Our
strong capitalization reflects the crucial role that we play in infrastructure development.

34
 ➢ In 1997
• IDFC is founded on the recommendations of the 'Expert Group on Commercialization of
Infrastructure Projects' under the Chairmanship of Dr. Rakesh Mohan. The group is
conceptualized to channel private capital into commercially viable projects.

➢ In 1999
• Is notified as a Public Financial Institution under Section 4A of the Companies Act.

➢ In 2000
• Gets registered with SEBI as a merchant banker.

➢ In 2001
• Gets registered with SEBI as a debenture trustee.
• Sets up Infrastructure Development Corporation (Karnataka) Limited (iDeCK)

➢ In 2002
• Sets up IDFC Private Equity as an investment manager for private equity funds.
• Sets up Uttaranchal Infrastructure Development Company Limited (UDEC).

➢ In 2003
• Successfully raises $200 million for the India Development Fund, the first infrastructure-focused
private equity fund.

➢ In 2005
• Becomes a public company after listing its shares on NSE and BSE.

➢ In 2006
• Successfully raises $450 million for its second infrastructure - focused private equity fund.

➢ In 2007
• Raises Rs. 2,100 crore through QIP.
• Sets up IDFC Project Equity Company Limited as a specialized project finance entity focused on
developing Indian infrastructure projects.

35
• Establishes IDFC Projects to develop, implement, own and operate projects in the infrastructure
spaceIn 2008
• Successfully raises $930 million through the India Infrastructure Fund to invest equity capital in
infrastructure projects and $700 million in its third private equity fund.
• Enters into asset management by acquiring the AMC business of Standard Chartered Bank in
India.
• Incorporates IDFC Capital (Singapore) Pte Limited, for an emerging markets private equity fund-
of-funds business.

➢ In 2009
• The company's loan book crosses Rs. 20,000 crore with more than 200 infrastructure projects
funded.
• Establishes IDFC Foundation to focus on capacity building, policy advisory and sustainability
initiatives.
• Becomes part of Nifty 50.

➢ In 2010
• Raises additional capital of Rs. 26,542 million through a Qualified Institution Placement at
Rs.168.25 per share and CCPS at a conversion price of Rs.176 per share. Government
shareholding reduces to 18%.
• Classified as an Infrastructure Finance Company (IFC).
• Raises Rs. 480 crore in the first tranche of its Long Term Infrastructure Bonds.

➢ In 2011
• Certified as India's first "Green Data Centre".
• IDFC opens an office in US.
• Sets up IDFC Foundation as a Section 25 Company for all its developmental work.
• IDFC & Natixis Global Asset Management enter into a strategic partnership.
• Raise USD 310 million of ECB's.
• Starts "Partners Program".

➢ In 2012
• IDFC Completes 15 years with over 1.5 million investors.

36
• Launches "In Our Hands" an youth engagement initiative, to socialize the policy advocacy work
being done under the aegis of the India Infrastructure Report (IIR).
• Releases a handbook titled "EVOLVING PERSPECTIVES IN THE DEVELOPMENT OF INDIAN
INFRASTRUCTURE", encompassing the policy work done in the last 15 years.

IDFC BUSINESS

➢ Alternative Asset Management

➢ Corporate Investment Banking
➢ Capacity Building Initiatives
➢ Community Engagement
➢ Foundation
➢ Government Advisory Services
➢ Financial Markets Groups
➢ Infrastructure
➢ Project Finance
➢ Private Equity
➢ Public Market Asset Management
➢ Policy Advocacy
➢ Mutual Fund
➢ Real Estate
➢ Securities

COMPANY’S STRUCTURE
Structure of the company consists of following entities:-

➢ Country head
➢ State head distribution channel
➢ Cluster heads of investments
➢ Individual brokers
➢ Back office operation
➢ Sales team

37
State head looks after all the operation in Jharkhand region like Ranchi and other cities of Jharkhand and
coordinates with asset management companies i.e. AMCs and reports to country head, and cluster heads
of investments are responsible for sales team and report to state head distribution channel and sales
people who directly interact with investors for the investments report to cluster head investment. Sales
team is supported by back office operations, like role of back office operation.

SWOT ANALYSIS OF THE COMPANY AND ITS COMPETITOR

STRENGTH WEAKNESS

➢ BRANDNAME ➢ BRANCHASE OF COMPANY IS LESS

➢ KNOWN TO BE ETHICAL ONLY 27 IN INDIA.
➢ PRESENCE IN ALL OVER INDIA ➢ LACK OF MANPOWER
➢ EXPERIENCED PEOPLE IN THE COMPANY ➢ NOT HAVING NECESSARY
➢ UNBIASNESS INFRASTRUCTURE

OPPORTUNITY THREATS

➢ ZERO BASE ➢ INDIVIDUAL BROKERS

➢ LACK OF PROPER SERVICES AVAILABLE ➢ ITS COMPETITOR’S PROMOTIOAL
IN THE MARKET ACTIVITIES
➢ ABSENCE OF LEADER IN THE MARKET, IN ➢ ITS COMPETITOR’NEW BUSINESS
DISTRIBUTION ( MUTUAL FUNDS) PLANS
➢ HUGE POTENTIAL OF MUTUAL FUND ➢ ATTRITION
MARKET ➢ LACK OF MANPOWER
➢ GROWTH OF MUTUAL FUND MARKET ➢ NOT HAVING NECESSARY
➢ INCREASE IN INCOME LEVEL OF PEOPLE INFRASTRUCTURE

38
 ASSET UNDER MANAGEMENT
AUM or Asset Under Management is the total market value of investments managed by an asset
management company (AMSs).

AMC wise Quarterly Average AUM

No. of QAAUM QAAUM (Rs. Prev Prev QAAUM Inc/Dcr

Mutual Fund Name Funds Date Cr) Date (Rs. Cr) (Rs. Cr)

Aditya Birla Sun Life 151 Mar 2021 269278.03 Dec 255458.48 13819.55
Mutual Fund 2020

Axis Mutual Fund 50 Mar 2021 196548.66 Dec 177473.65 19075.01

2020

Baroda Mutual Fund 21 Mar 2021 9624.44 Dec 8269.68 1354.76

2020

BNP Paribas Mutual Fund 18 Mar 2021 7830.18 Dec 7323.49 506.69
2020

BOI AXA Mutual Fund 16 Mar 2021 2288.11 Dec 2349.96 -61.85
2020

Canara Robeco Mutual 23 Mar 2021 28241.44 Dec 23177.03 5064.41

Fund 2020

DSP Mutual Fund 63 Mar 2021 97352.83 Dec 89457.34 7895.49

2020

Edelweiss Mutual Fund 38 Mar 2021 46844.09 Dec 41418.59 5425.5

2020

Essel Mutual Fund 10 Mar 2021 697.45 Dec 669.95 27.5

2020

Franklin Templeton 77 Mar 2021 82441.26 Dec 81154.98 1286.28

Mutual Fund 2020

HDFC Mutual Fund 102 Mar 2021 415566.1 Dec 389466.56 26099.54
2020

HSBC Mutual Fund 35 Mar 2021 10373.72 Dec 9953.7 420.02

2020

39
 No. of QAAUM QAAUM (Rs. Prev Prev QAAUM Inc/Dcr
Mutual Fund Name Funds Date Cr) Date (Rs. Cr) (Rs. Cr)

ICICI Prudential Mutual 174 Mar 2021 405360.42 Dec 379901.26 25459.16
Fund 2020

IDBI Mutual Fund 22 Mar 2021 4120.2 Dec 4324.6 -204.4

2020

IDFC Mutual Fund 58 Mar 2021 122110.74 Dec 121081.39 1029.35

2020

IIFL Mutual Fund 3 Mar 2021 2369.93 Dec 1885.1 484.83

2020

Indiabulls Mutual Fund 15 Mar 2021 663.68 Dec 921.33 -257.65

2020

Invesco Mutual Fund 45 Mar 2021 36791.04 Dec 32739.35 4051.69

2020

ITI Mutual Fund 11 Mar 2021 1178.53 Dec 844.81 333.72

2020

JM Financial Mutual Fund 12 Mar 2021 2383.38 Dec 3699.07 -1315.69

2020

Kotak Mahindra Mutual 92 Mar 2021 233780.35 Dec 216227.92 17552.43

Fund 2020

L&T Mutual Fund 39 Mar 2021 72727.95 Dec 68976.29 3751.66

2020

LIC Mutual Fund 25 Mar 2021 16594.23 Dec 15443.04 1151.19

2020

Mahindra Manulife 16 Mar 2021 5271.07 Dec 5058.05 213.02

Mutual Fund 2020

Mirae Asset Mutual Fund 25 Mar 2021 69597.6 Dec 58070.29 11527.31
2020

Motilal Oswal Mutual 24 Mar 2021 25763.16 Dec 22761.83 3001.33

Fund 2020

Nippon India Mutual Fund 161 Mar 2021 228586.39 Dec 213033.04 15553.35
2020

40
 No. of QAAUM QAAUM (Rs. Prev Prev QAAUM Inc/Dcr
Mutual Fund Name Funds Date Cr) Date (Rs. Cr) (Rs. Cr)

PGIM India Mutual Fund 33 Mar 2021 6522.13 Dec 4842.02 1680.11
2020

PPFAS Mutual Fund 3 Mar 2021 8720.3 Dec 6631.72 2088.58

2020

PRINCIPAL Mutual Fund 19 Mar 2021 7768.23 Dec 6854.92 913.31

2020

Quant Mutual Fund 13 Mar 2021 721.48 Dec 453.3 268.18

2020

Quantum Mutual Fund 10 Mar 2021 1785.69 Dec 1592.34 193.35

2020

SBI Mutual Fund 146 Mar 2021 504390.41 Dec 456497.93 47892.48
2020

Shriram Mutual Fund 4 Mar 2021 202.72 Dec 189.43 13.29

2020

Sundaram Mutual Fund 61 Mar 2021 31971.17 Dec 30385.18 1585.99

2020

Tata Mutual Fund 60 Mar 2021 61684.02 Dec 59263.06 2420.96

2020

Taurus Mutual Fund 8 Mar 2021 475.34 Dec 434.33 41.01

2020

Trust Mutual Fund 2 Mar 2021 625.25 0 625.25

Union Mutual Fund 17 Mar 2021 5240.41 Dec 4612.83 627.58

2020

UTI Mutual Fund 149 Mar 2021 182852.67 Dec 165358.55 17494.12
2020

YES Mutual Fund 3 Mar 2021 109.68 Dec 128.99 -19.31

2020

Note: No. of funds displayed as on today.

41
SCHEMES OF IDFC MF

Scheme: IDFC Bond Fund – Short Term – Regular Plan - Growth

Category Short Duration Fund

Return 7% - 7.5%

Portfolio Fund has 91.76% of investment in debt.

Time Horizon 3 month – 6 month

Scheme: IDFC Money Manager Fund - Regular Plan - Growth

Category Money Market Fund

Return 4.5% - 5%

Portfolio Fund has 88.39%% of investment in debt.

Time Horizon 1 month

Scheme: IDFC Hybrid Equity Fund – Regular Plan - Growth

Category Aggressive Hybrid Fund

Return 7.5% - 9%

Portfolio Fund has 80.36% of investment in equity and 17.93% in debt.

Time Horizon Minimum 1Year

Scheme: IDFC Sterling Value Fund – Regular Plan - Growth

Category Short Duration Fund

Return 11.5% - 13%

Portfolio Fund has 96.79% of investment in equity.

Time Horizon 3Year+

42
Scheme: IDFC Core Equity Fund – Regular Plan - Growth

Category Large & Mid Cap Fund

Return 13% - 14%

Portfolio Fund has 97.22% of investment in equity.

Time Horizon 3Year+

Scheme: IDFC Large Cap – Regular Plan - Growth

Category Large Cap Fund

Return 11.5% - 13%

Portfolio Fund has 91.49% of investment in equity.

Time Horizon 3-4 Year +

Scheme: IDFC Tax Advantage (ELSS) Fund – Regular Plan - Growth

Category ELSS

Return 13% - 16%

Portfolio Fund has 96.43% of investment in equity.

Time Horizon 5YEAR+

43
 FINDINGS

01. The biggest investment in the market is coming through SIPs.

02. According to AMFI the total SIP accounts in 2018-2019 is 2.57 crore and the SIP
contribution has increased to Rs.76534 crores (2018-2019) from Rs.67190 crore (2017-
2018).

03. AMFI data shows that the MF industry had added about 9.31 lacs SIP accounts each
month on an average during the FY 2018-2019, with an average SIP size of about
Rs.3,150 per SIP account.

04. IDFC Mutual Fund stands on 9th rank.

05. Investing online is an issue-people in India still hesitate in doing any transaction
online similarly most of the people don’t want to invest online and they prefer to
invest in Fixed Deposits.

06. People are not much aware about the options they have with them to increase the
value of their money with respect to inflation rate and people are investing in FDs
and they like deposit their money in bank because they are not much aware about
mutual funds.

44
 SUGGESITIONS AND RECOMMENDATION

➢ The employees of IDFC Mutual Fund should provide more facilities to their customers and
should be in touch with their clients.

➢ They should make peoples aware of the benefits so that they get interested in investing.

➢ The customers who deals in large amount or make huge investment, their brokerage rate
should be reduced.

➢ The customer should be given proper training of trading when they are provided with the
software.

45
 CONCLUSION

Mutual Fund Marketing is different from marketing of other goods. The present study
try to explore the marketing strategies adopted by mutual funds, the different 7Ps that
are involved in the marketing of mutual fund and also the Marketing strategies that are
involved by the various mutual fund houses for attracting the investors. Mutual funds
are not absolutely free to choose their material for advertisement or promotion, as SEBI
has issued some mandatory guidelines for the fund houses. Mutual fund houses are
more dependent on the intermediaries and presently the fund houses are using all the
available option for advertisement and promotion.

46
 BIBLIOGRAPHY

Websites

https://www.sebi.gov.in
https://www.mutualfundindia.com

https://idfcmf.com

https://www.moneycontrol.com

https://www.wikipedia.org

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48