Dr. Rafiq Zakaria Campus Maulana Azad Educational Trus’t MILLENNIUM INSTITUTE OF

MANAGEMENT Rauza Baugh, Aurangabad

PROJECT REPORT ON

“EVALUATION OF MUTUAL FUND INDUSTRY” FOR STANDARD CHARTERED Pvt. Ltd.

Submitted by

KHAN MOHD AKBAR

Director Guided By Dr. Shaikh Saleem Mr. Khalid Hashmi

Dr. Babasaheb Ambedkar Marathwada University, Aurangabad

For the Academic Year 2011-2012

Dr. Rafiq Zakaria Campus Maulana Azad Educational Trus’t MILLENNIUM INSTITUTE OF

MANAGEMENT Rauza Baugh, Aurangabad

Certificate

This is certifying that KHAN MOHD AKBAR Student of MBA (IInd year ) has completed his project report on“EVALUATION OF MUTUAL FUND INDUSTRY”FOR STANDARD CHARTERED Pvt. Ltd. and submitted satisfactory project report as per the requirement of Dr. BABASAHEB AMBEDKAR MARATHWADA UNIVERSITY in the partial fulfillment of the Master of Business Administration (M.B.A.IInd year ) academic year 2013-2014

GUIDED BY DIRECTOR Dr. Khalid Hashmi Dr. Shaikh Saleem

DECLARATION

I hereby declare that I have formed, completed and written the project report entitled ““EVALUATION OF MUTUAL FUND INDUSTRY”FOR STANDARD CHARTERED Pvt. Ltd.”. It has not been previously submitted for the basis of the award of any degree or other similar title for any other university.

Mr. KHAN MOHD.AKBAR Place: - AURANGABAD ROLL NO:12 MBA.IInd year.

(MARKETING)

Date:-

ACKNOWLEDGMENT

I take this opportunity to express my profound debts of gratitude and

obligation,to my esteemed guide Prof. Mr. Khalid Hashmi Millennium

Institute of Management.Dr.Rafiq Zakariya Campus

Aurangabad. for his most valuable help and creative suggestions at

all stages of my work. I am also thankful to Dr. Shaikh Saleem sir,

Director of Millennium Institute of Management

. I also thankful to all the staff member & All

Department that has to provide me valuable guidance, which is

helpful to fulfillment my Project Report.

Mr. KHAN MOHD.AKBAR

SR NO. CONTENTS PAGE NO.

1Executive Summary

OBECTIVE OF PROJET

3Company Profile

Standard Charted Bank Vision and Strategy

4Mutual funds

A New window to the investment

world

What is Mutual fund?

Organization of A Mutual Funds

Types of Mutual Fund

Merits & Demerits of Mutual Fund

About Standard Chartered Mutual Fund

Mutual Fund Companies

5 RESEARCH METHODOLOGY

6 DATA ANALYSIS

7 Conclusion

8Recommendations

9Format of Questionnaires

10Bibliography

EXECUTIVE SUMMARY

In the contemporary world, many fast mushrooming financial institutions are, offering new

product and services to the investors.

They entice them to invest their funds by providing incentives and facilities in terms of flexible

investment options and withdrawal plan. Mutual fund comes into this

category. The mutual fund industry has grown up in leaps and bounds, particularlyduring the last

two decades of the 20th century. Moreover, the entry of private funds (since 1993) has injected a

sense of competition and the industry has been witnessing a structural transformation from a

public sector monopoly to monopolistic industry.

OBECTIVE OF PROJECT

To evaluate investment performance of mutual fund in terms of risk and return.

This project represent a information regarding companies brand awareness and

The various services which the Organization provides i.e. financial advisory services

specifically.

The objective of the project is to understand the customer investment

Preferences more effectively and efficiently.

To find the financial performance of mutual funds.

To know the present scenario of mutual fund

Rate of return given by the different mutual fund schemes

COMPANY PROFIL

OverviewStandard Chartered is the world s leading emerging markets bank. Its headquarter is in London. Its business however has always been overwhelmingly international. It employees 30,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, Middle East, Africa, United Kingdom and the Americas.It is one of the world s most recognized banks, with a management team comprising 70 nationalities.

The bank serves both consumers and Wholesale banking customers. The Consumer Bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The wholesale bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody leading, foreign exchange and interest rate management and debt capital markets.With nearly 150 years in the emerging markets, the banks has unmatched knowledge and understanding of its customers in its markets. The bank is trusted across network for its standard of governance and its commitment to make a difference in the community in which it operates.

A summary of the events in the history of Standard Chartered

Standard Chartered is named after two banks, which merged in 1969. They were originally known as the Standard Bank of British South Africa and The Chartered Bank of India, Australia and China. Of the two banks, The Chartered Bank is the older one has been found in 1853 following the grant of a Royal Charter from Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his fortune in London making hats. James Wilson went on to start The Economist, still one of the world s pre-eminent publications. Nine years later, in 1862, the Standard Bank was founded by a group of businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in south Africa and had become a successful merchant. Both banks were keen to capitalize on the expansion of trade between Europe, Asia, Africa and to reap the handsome profit to be made from financing the trade. The Chartered bank open its first branch in 1858 in Chennai and Mumbai. A branch opened in Shanghai that summer beginning Standard Chartered unbroken presence in China. The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in Singapore. In 1861, the Singapore agency was upgraded to a branch, which helped provide finance for the rapidly producing rubber and tin industries in Malaysia. In 1862, The Chartered bank was authorized to issue bank notes in Hong Kong. Subsequently it was also authorized to issue bank notes in Singapore, a privilege it continued to exercise up until the end of the 19th century. Over the following decade both the Standard Bank and the Chartered Bank printed bank notes in a

variety of countries including China, South Africa, Zimbabwe, and Malaysia. Today Standard Chartered is still one of the three banks, which print Hong Kong s bank notes.

Expansion in Africa and Asia

The Standard Chartered Bank opened for business in Port Elizabeth, South Africa in 1863. It pursued a policy of expansion and soon amalgamated with several other banks including the Commercial Banks of Port Elizabeth, the Colesberg Bank, the British Kaffarian Bank and the Fauresmith bank. The Standard bank was prominent in the financing and development of the diamond fields of Kimberly in 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Over time, half the output of the second largest goldfield in the world passed through the Standard Bank on its way to London. In 1892, theStandard Bank opened for business in Zimbabwe and expanded into Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the Democratic Republic of Congo (D.R.C.) in 1911 and Uganda in 1912. Of these new businesses, Botswana, Zanzibar and the D.R.C proved the most difficult and the branches soon closed. A branch in Botswana opened again in 1934 but lasted for only a year and it was not until 1950 that the Bank re-opened for business in Botswana. In Asia the Chartered Bank expanded opening offices. Including Myanmar in 1862, Pakistan and Indonesia in 1863, the Philippines in 1872, Malaysia in 1875, Japan in1880 and Thailand in 1894. Some 34 years after the Chartered Bank appointed an agent in Sri Lanka it opened a branch in 1892 to take advantage of business from the tea and the rubber industries. During 1904, a branch opened in Vietnam. Both the Chartered and the Standard bank opened offices in New York and Hamburg in the early 1900s. The charted Bank gained the first branch license to be issued to a foreign bank in New York.

Standard Chartered PLC In 1969 the decision was made by the Standard Bank and the Chartered Bank to undergo a friendly merger thus forming standard Chartered PLC.

It was one year later that the descendants of the Chartered Bank of India, Australia and China were finally permitted to open a representative office in Sydney, Australia. Standard chartered subsequently acquired the UK based Hodge Group, in which it already had a minority shareholding, and the Wallace Brothers Group. The Hodge Group brought to Standard Chartered an extensive network of UK offices specializing in installment credit and industrial leasing and after a period of rationalization its name was changed to Chartered Trust limited. Standard Chartered operations in Jersey emerged from the integration of other Hodge Group Business with those of Wallace Brothers Bank (Jersey), Limited.Standard Chartered decided, after a merger, to expand the Group outside its traditional markets. In Europe a number of offices were opened including Austria, Belgium, Denmark, and Ireland, Spain and Sweden as well as several major cities in the UK.Standard Chartered also opened offices in Argentina, Canada, Colombia, the Falkland Islands, Panama and Nepal. In the USA, a number of offices were opened and three banks were acquired. These included the Union Bank of California, which gave Standard a Chartered a presence in Brazil and Venezuela. The opening of a branch in Istanbul in 1986 was overshadowed by a far more dramatic event when Lloyds bank of the UK made a hostile take-over bid for Standard chartered. Standard Chartered won its right to remain independent but entered i8nto a period of considerable change.By the late 1980s Standard Chartered already had considerable exposure to third world debt. To this were added provisions against loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered reviewed its operations and decided to focus on its core strengths of Consumer Banking, Corporate & Institutional Banking and Treasury in its well-established operations in Asia, Africa and the Middle East. This led to a series of divestments notably in Europe, the United States and Africa. During this time staff numbers were reduced, businesses not considered core, were sold or closed, associate holding disposed of, unprofitable branches closed and back office functions consolidated. In addition expensive buildings were sold with the proceeds reinvested in the business, and the senior, management team was radically changed and strengthened.Standard Chartered in the 1990sEven within this period of apparent retrenchment Standard Chartered expanded its network, re-opening in Vietnam in 1990, Cambodia and Iran in 1992, Tanzania in 1993 and Myanmar in 1995. With the opening of branches in Macao and Taiwan in 1983 and 1985 plus a representative office in Laos (1996) Standard Chartered now has an office in every country in the Asia Pacific Region with the exception of North Korea. In 1998 Standard Chartered concluded the4 purchase of a controlling interest in Blanco Exterior de los Andes extebandes) an Andean region bank involved primarily in trade finance. With this purchase Standard Chartered now offers full banking services in Colombia, Peru and Venezuela.In1999, Standard Chartered acquired the global trade finance business of Union Bank of Switzerland. This acquisition makes Standard Chartered one of the leading clearers. There is, of dollar payments in the USA. Standard Chartered also opened a new Subsidiary, Standard Chartered Nigeria Limited in Lagos, acquired 75 per cent of the share capital of Metropolitan Bank of the Lebanon.

Standard Charted Bank Vision and Strategy

Standard Charted Bank has been established for over 150 years. It spans the developed and emerging economics of the world with a network of over 500 offices in more than 50 countries.

With an objective to become a world-class bank, Standard Charted has adopted the strategies of:

Building a world-class business: Focus on core business, provide superior customer services, and generate maximum returns and benefits for shareholders.

Staying lean and focused: Invest in core business, optimal usage of resource, and manage performance by balancing cost and risks.

Recognized as a wining organization: Developing capability to the fullest, instill global, inject pride into the minds of the people to get connected to Standard Charted Bank.

Overall this introduction part has been discussed under three different heads viz.Industry Profile, Company Profile, and Services and Products profile for the better comprehension.

INTRODUCTION

MUTUAL FUND

HISTORY OF MUTUAL FUNDS IN INDIA:

In India the setting up of Unit Trust of India (UTI) in 1963 marked the advent of

mutual fund industry. Unit Trust of India was set up by an Act of Parliament. The

purpose of establishing of Unit Trust of India was to give a fillip to the equity market.

In the wake of Indo-China war of 1962, there was shortage of savings going into

industrial investment for economic development. There was a need to mobilize

adequate amount of risk capital for industrial enterprise. The household savings were

sought to be canalized into primary and secondary market through units. However, in

the initial years, the emphasis in UTI was on income product. Master Share launched

in 1986 ushered in the equity-oriented schemes in India. Unit Trust of India launched

a variety of innovative products suited to meet diverse needs of investors, virtually

the complete life cycle of investors.

EVOLUTION OF MUTUAL FUND IN INDIA:

The mutual fund industry in India started in 1963 with the formation of Unit Trust of

India, at the initiative of the Government of India and Reserve Bank the. The history

of mutual funds in India can be broadly divided into four distinct phases.

FIRST PHASE: 1964-1987

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set

up by the Reserve Bank of India and functioned under the Regulatory and

administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from

the RBI and the Industrial Development Bank of India (IDBI) took over the

regulatory and administrative control in place of RBI. The first scheme launched by

UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets

under management.

SECOND PHASE: 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS )

1987 marked the entry of non- UTI, public sector mutual funds set up by public

sector banks and Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund

established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab

National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of

India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual

fund in June 1989 while GIC had set up its mutual fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of

Rs.47, 004 crores.

THIRD PHASE: 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS)

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

mutual fund industry, giving the Indian investors a wider choice of fund families.

Also, 1993 was the year in which the first Mutual Fund Regulations came into being,

under which all mutual funds, except UTI were to be registered and governed. The

erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first

private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund)

Regulations were substituted by a more comprehensive and revised Mutual Fund

Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)

Regulations 1996.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now

functions under the SEBI (Mutual Fund) Regulations 1996.

s

FOURTH PHASE: SINCE 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI

was bifurcated into two separate entities. One is the Specified Undertaking of the Unit

Trust of India with assets under management of Rs.29, 835 crores as at the end of

January 2003, representing broadly, the assets of US 64 scheme, assured return and

certain other schemes. The Specified Undertaking of Unit Trust of India, functioning

under an administrator and under the rules framed by Government of India and does

not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and

LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.

With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,

000 crores of assets under management and with the setting up of a UTI Mutual Fund,

conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking

place among different private sector funds, the mutual fund industry has entered its

current phase of consolidation and growth. As at the end of September, 2004, there

were 29 funds, which manage assets of Rs.153108 cores under 421 schemes.

MUTUAL FUND –A NEW WAY OF INVESTMENT

Mutual fund is an investment company or trust that pools the

resources from Thousands of its shareholders or unit holders, who share common

investment, Goal, and then diversifies its investment into different types of securities

in order to realize potential returns with reasonable safety.

In the era of globalization, first rapid price fluctuations are occurring for assets like

equity shares,bonds,real estate, derivatives,etc. second, an individual also finds it

difficult to keep track of ownership of his assets, investment, brokerage dues and

bank trasactions,etc.in this context, mutual fund are the solution to all these situation.

Mutual fund helps the small and medium size investors can participate in mutual

Funds by buying the units. The income earned through these investment and Capital

appreciation realized by the schemes is shared by its unit holders in pro-Portion to the

number of units owned by them.

Mutual fund plays a vital role in mobilization of resources and their effective

allocation. These funds play a significant role in financial intermediation,

development of capital market and growth of the financial sector as a whole .The

active involvement of mutual fund companies, and tries to suggested whether the

funds and schemes outperform the market with the same level of risk or not.

Different investment avenues are available to investors, mutual funds also offer Good

investment opportunities to the investors

Mutual funds are investment products that operate on the principle of Strength

in numbers.

Mutual fund is a trust, which collects money from a large group

of investor

Pool it together & invest it in various securities e.g. shares, debentures and

Other securities in line with the financial objectives.

Diversification reduces the risk because not all stocks may move

in same

Direction in the same proportion at the same time.

Units are issued to investors to as per quantum of money

invested by

Them. Investors of mutual fund are known as unit holders.

Different schemes of different objectives are launched time to

time by

Mutual fund.

Investors have to share profits/losses in proportion to their

investment.

Mutual fund is required to be registered with SEBI, which

regulates

Securities markets, before it can collect funds from public.

WHAT IS MUTUAL FUND?

Mutual Fund is a trust that pools the savings of a number of investors who share a

common financial goal. The money thus collected is then invested in capital market

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

through these investments and the capital appreciation realized is shared by its unit

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

the most suitable investment for the common man as it offers an opportunity to invest

in a diversified, professionally managed basket of securities at a relatively low cost.

NET ASSET VALUE (NAV)

 Net Asset Value of the fund is the cumulative market value of the assets fund

net of its liabilities. In other words, if the fund is dissolved or liquidated, by selling

off all the assets in the fund, this is the amount that the shareholders would

collectively own. This gives rise to the concept of net asset value per unit, which is

the value, represented by the ownership of one unit in the fund. It is calculated simply

by dividing the net asset value of the fund by the number of units. However, most

people refer loosely to the NAV per unit as NAV, ignoring the "per unit". We also

abide by the same convention

NAV= Net assets of the scheme / Number of units outstanding

THE FLOW CHART BELOW DESCRIBES BROADLY THE WORKING OF

A MUTUAL FUND :

ORGANISATION OF A MUTUAL FUND:

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

The mutual fund industry in India began with the setting up of the Unit Trust In India

(UTI) in 1964 by the Government of India. During the last 36 years, UTI has grown

to be a dominant player in the industry with assets of over Rs.76,547 Cores as of

March 31, 2000. The UTI is governed by a special legislation, the Unit Trust of India

Act, 1963. In 1987 public sector banks and insurance companies were permitted to set

up mutual funds and accordingly since 1987, 6 public sector banks have set up mutual

funds. Also the two Insurance companies LIC and GIC established mutual funds. 

Securities Exchange Board of India (SEBI) formulated the Mutual Fund (Regulation)

1993, which for the first time established a comprehensive regulatory framework for

the mutual fund industry. Since then several mutual funds have been set up by the

private and joint sectors.

TYPES OF MUTUAL FUNDS

The Mutual Funds are of four types, namely:

1. Aggressive Funds

2. Growth Funds

3. Balanced Funds

4. Conservative Funds

And, they depend on the proportion invested in the following:

1. Stocks

2. Bonds

3. Short –Terms

AGGRESSIVE FUNDS:

This strategy might be appropriate for investors who seek High growth and who can

tolerate wide fluctuations in market values, over the short terms.

GROWTH FUNDS:

This strategy might be appropriate for investors who have a preference for growth

and who can withstand significant fluctuation in market values.

BALANCED FUNDS:

Capital appreciation and income. This strategy might be appropriate for investors

who want the potential for capital appreciation and some growth, and who can

withstand moderate fluctuations in market values.

CONSERVATIVE FUNDS:

Income and Capital appreciation. This strategy might be appropriate for investors

who want to preserve their capital and minimize fluctuations in market value.

OTHER TYPES OF MUTUAL FUND

1.OPEN ENDED & CLOSED ENDED

An open-end fund is one that has units available for sale and repurchases all times.

An investor can buy or redeem units from the fund itself at a price based on the Net

Asset Value (NAV). NAV per unit is obtained by dividing the amount of the market

value of the fund’s assets (plus accrued income minus the fund’s liabilities) by the

number of units outstanding.

Amount Of the Market Value of the fund’s assets +

(Accrued income-the funds liability) NAV= ___________________________________________

Number of units outstanding

The number of units outstanding goes up or down every time the fund issues new

units or repurchases existing units. In other words, the ‘unit capital’ of an open-end

mutual fund is not fixed but variable.

Where as, in close–end fund it makes a one time of sale of fixed number of units

Later on, unlike open-end funds do not allow investors to buy or redeem units directly

from funds. In this, the fund units can be traded at a discount or premium to NAV

based on investor’s perception about the funds future performance and other market

factor affecting the demand for or supply of fun’s units. The number of units

outstanding of a close-end fund does not vary on account of trading the fund’s units at

stock

2. LOAD AND NOLOAD FUNDS :

Marketing of a new Mutual Fund scheme involves initial expenses. The expenses

may be recovered from the investors in different ways at different times. Three usual

ways in which a fund’s sales expenses may recovered from the investors are:-

At the time of investor’s entry into the fund/scheme by deducting a specific amount

from his initial contribution, or

By charging the fund/scheme with a fixed amount each year, during the stated

number of years, or

At the time of investors exit from the funds/scheme, by deducting a specified amount

from the redemption precedes payable to the investor. These charges made by the

fund managers to the investors to cover distribution /sales/marketing expenses are

often called ?Loads”. The load amount charged to the scheme over a period of time is

called as “deferred load”. The load that an investor pays at the time of his exit is

called “back-end” or “Exit Load”.

Funds that charge front-end, back-end or deferred loads are called “LOAD FUNDS”

Funds that make no such charges or loads for sales expenses are called “NO-LOAD

FUNDS”.

3. TAX-EXEMPT AND NON-TAX-EXEMPT FUNDS:

When a fund invests in tax-exempt securities, it is called a tax-exempt fund. In India,

after the 1999 union government budget, all of the dividend income received from

any of the mutual funds is tax free in the hands of investor. However, funds other

than Equity funds have to pay a distribution tax, before distributing income to

investors. In other words, equity mutual fund scheme are tax-exempt investment

avenues, while other funds are taxable for distributable income.

When a fund invests in non-tax-exempt securities, it is called a non-tax-exempt fund.

MERITS OF MUTUAL FUND:-

The Merits of investing in a Mutual Fund are:

Diversification: The best mutual funds design their portfolios so individual

investments will react differently to the same economic conditions. For example,

economic conditions like a rise in interest rates may cause certain securities in a

diversified portfolio to decrease in value. Other securities in the portfolio will

respond to the same economic conditions by increasing in value. When a portfolio

is balanced in this way, the value of the overall portfolio should gradually

increase over time, even if some securities lose value.

Professional Management: Most mutual funds pay topflight professionals

to manage their investments. These managers decide what securities the fund will

buy and sell.

Regulatory oversight: Mutual funds are subject to many government

regulations that protect investors from fraud.

Liquidity : It's easy to get your money out of a mutual fund. Write a check,

make a call, and you've got the cash.

Convenience: You can usually buy mutual fund shares by mail, phone, or over

the Internet.

Low cost: Mutual fund expenses are often no more than 1.5 percent of your

investment. Expenses for Index Funds are less than that, because index funds are

not actively managed. Instead, they automatically buy stock in companies that are

listed on a specific index.

Transparency: Mutual Fund schemes are said to be Transparent because they

show the clear allocation of Funds to Investors.

Flexibility: Mutual fund are flexible because they change time to time and also

if an Investor wants his money back before the maturity of the Fund He/she can

easily redeem it.

DEMERITS OF MUTUAL FUNDS:-

Mutual funds have their demerits and may not be for everyone :

No Guarantees:

No investment is risk free. If the entire stock market declines in value, the value of

mutual fund shares will go down as well, no matter how balanced the portfolio.

Investors encounter fewer risks when they invest in mutual funds than when they

buy and sell stocks on their own. However, anyone who invests through a mutual

fund runs the risk of losing money.

Fees and commissions:

All funds charge administrative fees to cover their day-to-day expenses. Some funds

also charge sales commissions or "loads" to compensate brokers, financial

consultants, or financial planners. Even if you don't use a broker or other financial

adviser, you will pay a sales commission if you buy shares in a Load Fund.

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

.Management risk :

When you invest in a mutual fund, you depend on the fund's manager to make the

right decisions regarding the fund's portfolio. If the manager does not perform as

well as you had hoped, you might not make as much money on your investment

as you expected. Of course, if you invest in Index Funds, you forego management

risk, because these funds do not employ managers.

About Standard Chartered Mutual Fund

Standard Chartered Mutual Fund is well-established fund house and is sponsored by the Standard Chartered Group.

At Standard Chartered Mutual Fund we strive to launch not just innovative products, but products that truly add value to our investors.

We were among the first to launch an active management debt fund-the Dynamic Bond Fund - that had the capability to mimic a cash fund or an income fund depending on market situations. The Short term and Medium term funds that were uniquely positioned at various points along the interest rate curve with the sole objective of maximizing value to investors with different investment time horizons.

Lately this innovation was again brought to the fore with the launch of the Standard Chartered Enterprise Equity Fund , a close-ended fund that sought to invest a portion in Equity IPOs. The fund also launched the Standard Chartered Premier Equity fund an equity fund that seeks to generate wealth by investing in relatively smaller companies.

We manage our schemes through well-researched and thoroughly tested processes like the 3 D Factor (For debt funds and helps us in predicting interest rate movements) and the Equity Circle process.

SCMF also pioneered several service initiatives that helped increase transactional ease. It was the first mutual fund to initiate

Across the counter redemptions for all classes of investors in liquid funds, One Call Free number 1800226622 accessible across 153 cities Phone transact service wherein investors can redeem without having any Personal Identification Number.

Standard Chartered Mutual Fund currently manages assets in excess of Rs. 13400 crores ( USD 2.9 Billion ) and has touched the lives of more than lakhs of investors residing in more than 1000 Indian towns.

Where do

mutual funds

invest?

Broadly, mutual funds invest basically in three types of asset

classes:

Stocks: Stocks represent ownership or equity in a company. They are also

called as Shares.

Bonds: These represent debt from companies, financial institutions or

government agencies.

Money Market Instruments: These include short-term debt

instrument such as treasury bills, certificates of deposits and inter bank

money.

Funds Time Period

Equity Funds 3 Years (plus)

Balanced Funds 18 months to 3 Years

MIP’s 1 Year (plus)

Income Funds 6 months to 1 Year

Liquid Funds few days to 6 months

HOW LONG TO KEEP INVESTMENT TO GET MAXIMUM RETURNS

Technically open-ended funds you can withdraw your investments even within a

week, but to get desired returns positive time frame is required are:

WHAT RETURNS CAN I EXPECT IF I KEEP MY MONEY FOR

SUGGESTED TIME FRAMES

The above-mentioned returns in the table are indicative and not assured. All

investments in MUTUAL FUNDS are securities and are subject to market risk and

the NAVs of the schemes may go up and down depending upon the factors and

forces affecting the security market including the fluctuations in the internal

rates .The past performance of the MUTUAL FUNDS is not indicative of future

performance.

Funds Returns

Sector funds 22% to 25% p.a

Balance funds 15% to 18% p.a

MIP’s Pension Plans 12% to 15% p.a

Income Funds 10% to 12% p.a

Liquid Funds 7% to 9% p.a

THE RISK RETURNS GRAPHS FOR VARIOUS FUNDS:-

The above Graph shows the Risk and Returns generated by different Funds.

Liquid Funds are less Risky and also generate less Returns where as Sector Funds

are more Risky but generate more Returns by the example of above two Funds it

is clear that Risk and Returns are directly proportional to each other. Other Funds

like Equity Funds, Balanced Funds and Income Funds are also gives the same

percentage of Returns as the Risk involved.

Liquid Funds

Income Funds

Balanced Funds

Equity Funds

Sector Funds

RISKS

RETURNS

Portfolio Management

Equity

- classic

Premier

Imperial

Enterprise

RESEARCH METHODOLOGY

METHODOLOGY OF STUDY:

Research is one of the methods of gaining knowledge. Research methodology is one

of the important part of the project. Research is conducted with a specific aim and

through research only we come to know about the merit and demerit of a particular

thing about which studies had been did. In this methodology a particular method is

used to study.

RESEARCH METHODOLOGY:

Research has its special significance in solving various operational and planning

problems of business and industry. Research methodology is a way to systematically

analyze the research problem.

DATA IS COLLECTED IN TWO WAYS :

PRIMARY DATA…

Data is collected through meeting people. the sample is mainly chosen the people

working in the software companies,Docters,Builders,Top Manager in any Origination

all over the Pune. Questionnaire is prepared which the targeted people have to fill,

which contains different types of investment avenues are present and the area in

which they are interested and want to invest or need any financial advisory services.

PRIMARY DATA COLLECTION PROCEDURE

I have obtained primary data through :-

1) Observation.

2) Cold calling.

3) Tele calling.

4) Direct communication with the people.

5) Through personal interview.

1. Observation

Observation is a kind of process by which with the help of people’s face reading

and looking at his personality I tried to understand that the profile is good or bad and

is that person really interested in Investment or not .

2. Cold calling

In this part I have explained our offering to the persons whom I have met in my

way and also try to make him different services like stock broking ,Mutual funds and

different schemes of mutual fund convinced that our offerings are superior services

than other stock broking firm .

3. Tele calling

At the time of telecalling as the term referred that I used to call the persons whose

data which was generated at the time of cold calling ,through Internet being got from

the company’s database and tried to fix up an appointment with that person and after

that I used to meet that profile. After meeting that person I used to make him

understand our offering and try to convince that person.

4. Direct communication with people

With the help of direct communication i.e. direct talk to people I have tried to

make him understand that what are different schemes under mutual Fund and explain

about dividend and growth all plans are very flexible. At the time of interaction I have

tried promote my company and also tried to motivate that people to grasp that

opportunity whatever we are offering.

5. Through personal interview

With the help of this process I have tried to explore that profile and tried to scan

that person’s quality and also his/her selling ability.

SECONDARY DATA…

Secondary data is collected from various magazines, newspaper, web sites.

Steps involved in execution of project…

Step-1 Preparing questionnaire for people which include all types of investment

product of standard chartered.

Step-2 Filling the questionnaire by the target customer.

Step-3 Follow up the interested people, who need assistance for getting

knowledge of where to invest.

Step-4 Finally the questionnaire is discussed through personal interface with

respondent.

DATA ANALYSIS

1) Approximate annual income

Income No.of People Percentage

60000-120000 135 24.55

120000-200000 125 22.73

200000-400000 210 38.18

Over,400000 80 14.55

No.of People

60000-120000

25%

120000-200000

23%

200000-400000

37%

Over,40000015% 60000-120000

120000-200000

200000-400000

Over,400000

2) What is your Preferable Period for investment?

SUITABLE MONTH FOR INVESTMENT

NO. OF RESPONDENTS 20

MONTH NO. OF RESPONDENTS

Jan - March 7

April - June 4

July - September 2

October - December 7

Suitable month of investment

Jan - March

April - June

July - September

October - December

Finding in Figure

Most of the investor are interested invest their amount at the month of Jan-

March because at that time Sensex seen that it increase and investor are ready to

invest but its depend on the stock market some time it seen that at low investor are

invest in the month of April – June at this time Stock market is low and investor

are ready to purchase more NAV and when its high they sell it.

3) How much percentage you will like to rate of return?

Rate of Return No. of People Percentage0 - 10 % 170 30.9110 - 20 % 225 40.9120 - 30 110 20.0030 Above 45 8.18

0 - 10 %31%

10 - 20 %41%

20 - 3020%

30 Above8%

0 - 10 %

10 - 20 %

20 - 30

30 Above

4) Which sector you will invest your money?

Sector No.of People PercentageMutual Fund 154 28Insurance 55 10Stock 137 24.91Govt. Bonds & securities 71 12.91Fixed Deposits 133 24.18

No.of People

Mutual Fund28%

Insurance10%Stock

25%

Govt. Bonds &

securities13%

Fixed Deposits

24%

Mutual Fund

Insurance

Stock

Govt. Bonds &securities

Fixed Deposits

5) How much percentage you will like to invest from your annual income? What

are you preferred investment priorities?

a. Insurance

Finding in Figure

A major chunk who have been interviewed it has been observed that almost 80%

have some kind of insurance policy. It has also been observed that though LIC is a

public sector undertaking, people of all ages have more faith in it as compared to

other private sector companies.

YES 77

NO 23

TOTAL 100

b. Bank (Fixed deposit)

Finding in Figure

There is no major difference between the number of people who prefer keeping

their money in fixed deposit and who don’t opt for it. There is however a growing

concern about the falling interest rate in banks on fixed deposit.

YES 49

NO 41

TOTAL 100

c. Bonds & Debentures

YES 34

NO 66

TOTAL 100

Finding in Figure

It has been observed that only 34% they have invested in Bonds and Debentures

AS compared to those who have not. This may be due to less knowledge about it

or the time of re-demotion.

No.of People

0 - 10 %14%

10 - 20 %23%

20 - 3025%

30 Above38%

0 - 10 %

10 - 20 %

20 - 30

30 Above

6) Annual Income investment in mutual fund

Annual Income No.of People Percentage

0 - 10 % 22 14.29

10 - 20 % 35 22.73

20 - 30 39 25.32

30 Above 58 37.66

No. of People

High10%

Medium70%

Low20%

High

Medium

Low

7) Risk taken by people

Rate of Return No. of People Percentage

High 55 10

Medium 385 70

Low 110 20

8) Do you invest regularly?

Percentage of people making any investment

89%

11%

YES

NO

Finding in Figure

It has been observed that approximately 90% of the correspondents invest in some

or the other financial instrument. Though the percentage of choice of investment

may vary due to different factors such as age, education, risk etc.

YES 89

NO 11

TOTAL 100

9) Do you invest using-

a). Scientific Tools b). By Intuition

Finding in Figure

It has been observed that there is no major difference between the

percentage of people who invest using scientific tools and those whose

who believe in their intuition but it is seen that the younger generation is

more leaning towards usage of scientific tools than their peers

By Scientific 47

By Intuition 53

Total 100

Methods of investment

47%

53%

Scientific toolBy intuition

10). Are you aware

about mutual

funds?

Finding in Figure

Only 12% of correspondent said they don’t know any thing about mutual

fund and 88% said they know about mutual funds but what we found that

they have just a primary or very negligible knowledge about mutual funds

and not really aware of the concept called MUTUAL FUND.

YES 88

NO 12

TOTAL 100

Q11. How you choose a mutual fund?

BRAND NAME 35

HIGH NAV 26

HIGH RETURNS 15

ADVERTISING 12

OTHERS 12

TOTAL 100

Finding in Figure

It has been observed that brand name does matter when people are

choosing a mutual fund as 35% said brand name. The next is NAV at

about 26%. These two factors play a major role during selection of mutual

funds

Conclusion

1) The most important consideration while making investment decision was

Return aspect followed by

Safety

Liquidity

Taxability

2 ) Investors confidence of investing in Mutual Fund is increased because of SEBI’s role as a mutual

fund regulator

3) From the above study made it shows that if the investor want to earn high return

and ready to take high risk then Magnum is the best and if investor want a scheme

of any company which will fetch stable return than Can equity will do.

4 ) A Mutual Fund pools the money of people with similar investment goals. The

money in turn is invested in various securities depending on the objective of the

mutual fund scheme, and the profits (losses) are shared among investors in

proportion to their investments. After doing the analysis on 4 funds following

conclusion can be made.

5) Mutual funds are the win-win option available to the investors who are not willing

to take any exposure directly to the security markets as well as it helps the investors

to build their wealth over a period of time. But the thing which must be

remembered by the investors is “investment in mutual fund is subject to market

risk”.

Recommendations

For company 1. The AMC (Asset Management Company) should create in awareness level among

the individuals about the benefits of Mutual Funds & the returns from the Mutual

Fund market.

2. This can be done by arranging in house workshop or by external program at a

public place to educate people about the nature, benefits & importance of Mutual

Funds.

3. Those who want to invested through SIP plan don’t ignored them.

4. Small towns, villages are still untapped and can also acts as an business area of very

huge potential

For Individuals

1. Please make your future secure by investing in Mutual Funds, as this will promise

you higher rate of return that conventional investments like Banks and Post Office

cannot provide

2. The individual should diversify their monthly income by preparing the Monthly

Budget and they can save some money out of their regular income to invest the

monthly plan of Mutual Funds.

3. India is passing through a tremendous growth phase with an average growth rate of 7-

8% per annum. With this growth phase there is growth in each and every sector,

hence there is rush to by shares and equities. It is also a very good time for mutual

fund companies but it is advisable for them and their brokers that they don’t just sell

mutual funds but sell the right kind of scheme which is comfortable to a person

nature of taking risk and need,

4. There is a general ignorance and questions about, what are mutual funds? What are

different schemes of mutual funds? How to invest in a mutual? And many more. This

thing should be handled by mutual fund companies and their brokers to provide

knowledge to their clients.

5. It has been seen that there is a major increase in the percentage of young investors

who have large amount of disposable income with them and want to invest, these

type of prospective clients should be tapped at an early stage..

6. Now even co-operative society can invest up to 10% of their capital in mutual funds

which open the door to new and very important client base.

QUSTIONARY

Name ……………………………………………………………………………..

:……………………………………………………………………………..

Address :……………………………………………………………………………..

………………………………………………………………………………

………………………………………………………………………………

Contact no:

4. What is your occupation? Employee Govnt. Non-Govnt. Businessman Retired person Other profession (specify………………………)

5. What is your Preferable Period for investment?

1. January – March

2. April – June

3. July – September

4. October – December

6. What is your annual income?

a) 60,000 – 1, 20,000b) 1, 20,000 – 2, 00,000c) 2, 00,000 – 4, 00,000d) Above 4 lakh

7. In which sector will you invest your money?

a) Mutual fund b) Insurancec) Fixed depositd) Govnt. Bond - Securities

e) Stock Market

8). Do you know about SCMF?

Yes No

9 )How much percentage of “rate of return” will you like?

a) 5%- 10%

b) 10% - 15% c) 15% - 20% d) 20%- 25%

10). How experienced are you at investing Mutual funds?

a) Inexperienceb) Experiencec) Moderately experienced) Very experience

11). How much percentage will you like to invest from your annual income?

INSURANCE

5 to 10% , 10 to 15% , 15 to 20%, 20% and above

MUTUAL FUNDS

5 to 10% , 10 to 15%, 15 to 20%, 20% and above

STOCK

5 to 10%, 10 to 15% , 15 to 20% , 20% and above

BONDS/FD

5 to 10% , 10 to 15% , 15 to 20% , 20% and above

12). How Much you can take risk

High Medium Low

BIBLOGRAPHY

WEBSITE VISITED-

www.amfiindia.com

www.standardcharteredmf.com

www.google.com

Newspaper:

Business magazines and Business newspaper