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A Project Report On: Awareness about systematic investment plan: A Best instrument for investment in mutual fund (With special reference to motilal oswal) report SUBMITTED BY:
Dipak prajapati Roll no. – 14 mba.ii
report SUBMITTED to;
Mr.kamlesh K PATEL
Summer placement coordinator S.K.SCHOOL OF BUSINESS MANAGEMENT PATAN
S.K.School of Business Management,Patan Management,Patan S.K.SCHOOL OF BUSINESS MANAGEMENT, S.K.SCHOOL HEMCHANDRACHARYA HEMCHANDRACH ARYA NORTH GUJARAT UNIVERSITY, PATAN
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S.K.School of Business Management,Patan Management,Patan
CONTENTS:
serial no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
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Page Topic certificate by organization Acknowledgement executive summary company overview &introduction MOSt Vision ,history& milestone People behind organization Service provide by MOSL About mutual fund What’s mutual fund’s SIP? Performance of SIP’s How to invest in SIP? Systematic investment plan(in detail) Objective of study Methodology Data analysis & interpretation SWOT analysis of MOSL Bibliography Questionnaire
no. 4 5 6 8-11 12-20 21-23 24-30 31-34 35-37 38-40 41 42-44 45 46 47-63 64-67 68 69-73 69
S.K.School of Business Management,Patan Management,Patan
DECLARATION
I, Mr. Dip Dipak Praja rajap pati do hereb reby declare tha that the the proj roject rep report titl titleed
“AWARENES “AWARENESS S
ABOUT ABOUT
SYSTEMATI SYSTEMATIC C INVESTMEN INVESTMENT T PLAN:A PLAN:A
INSTRUMENT FOR INVESTMENT IN MUTUAL FUND” is a genuine research work undertaken by me and it has not been published anywhere earlier.
Date: 25/7/2009 Place: Patan
Dipak Prajapati SKSBM, Patan
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S.K.School of Business Management,Patan Management,Patan
PREFACE
It is true that the world outside your cozy home is many a time quite different from what you have perceived. Similarly, it is possible that the theore theoretic tical al knowl knowledg edgee acquir acquired ed in the classr classroo oom m may differ differ from from the practical knowledge.
In order to make an individual aware of the practical implication of what he has learned. He is enriched with the practical training. I as a student of M.B.A. got this opportunity to know what is actually happening in a company. The main areas covered during the training period are: Marketing department, HR department, Financial department, Customer care department and Technical department,
I have taken taken training at Motilal Motilal Oswal Securities Ltd. I have sincerely sincerely acquired all the necessary information for my project report during my training period. I hope that this report will satisfy the object requirement.
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S.K.School of Business Management,Patan Management,Patan
Acknowledgement
“Chain of mistakes leads towards failures, chain of failures leads to experience and chain of experience leads to success.” That’s what a life’s path is.
Same is applicable to my research work. I do not claim that I have a complete knowledge of the subject. There are many persons who directly or indirectly helped me during our project.
I am really thankful to Mr. Vijay Patel a CEO of Motilal Motilal Oswal Securities Ltd, Mehsana him kind co-operation throughout the project.
I would like to also thankful to Mr. Mahesh Makvana and other back office staff and trading dealer staff for their continuous support.
I would like to thank with utmost gratitude to Mr. Kamalesh K Patel, the current Proffesor and Co- ordinator of project and other faculty members members for guiding me time to time during the project.
I would like also thankful thankful to Mr.Jay Oza they have to providing providing fully Information Information regarding Mutual Fund theoretically as well as practically.
I am also thankful to Mr. Ajay Patel, Mr. Sanjay Patel, Mr. Jay Pandya and other staff.
I take a great pleasure in expressing deep sense of gratitude towards him for having given us opportunity to do a project on market analysis of Motilal Oswal Securities Ltd.
Executive summary: 6
S.K.School of Business Management,Patan Management,Patan
In Indi India, a, Secu Securi riti ties es mark market et is a very very boom boomin ing g sect sector or.. Th Ther eree are are many many play player erss( Brokers Or Sub-brokers Sub-brokers ) comes in this market. market. They have cut-through cut-through competition competition to cover more & more market. They provide different kind of services in mutual fund. So I basically prefer securities market & specially Mutual Fund. I cover following main topic in this project which show all the information of Mutual Fund & Motilal Oswal Securities Limited.
Indian financial system
About Indian stock market BSE & NSE
Company’s Background
Mutual Fund Services Provided by MOSL
Discussion about systematic investment plans
Questionnair Data Analysis & Interpretation
Finding & Suggestion
Testing hypothesis Motilal Oswal Securities Limited is a brand name of in Securities market. It is specially Known for its successful research ideas. Mutual fund is basically dependent on research, so I can say that mutual fund of different AMC’s provided by Motilal Oswal is really very successful and gives more return. Company has gotten “Best Local Brokerage House” by Asia money Pole 2005.
I included different kind of AMC’s Mutual fund provided by MOSL & their schemes & features.
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S.K.School of Business Management,Patan Management,Patan I did a live survey on awareness of Mutual fund with 100 sample size. I included 14 questions in my questioner and found that the market of Mehsana city is very potential for mutual fund. But they have not proper information and guideline. I also found that they believe that Mutual fund is gives more return. In mehsana when in the field or survey I note that many people know about The systematic investment plan of mutual fund and they have a good this instrument there is a big scope for brokers and mutual funds company. I learn lost of things and quality of manager with practical experience.
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knowledge about
S.K.School of Business Management,Patan Management,Patan
Organization overview
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Introduction
Moti Mo tila lall Oswa Oswall Secu Securi riti ties es Ltd. Ltd. (MOS (MOSt) t) is a lead leadin ing g rese resear arch ch and and advisory based stock broking house of India, with a dominant position in both 9
S.K.School of Business Management,Patan Management,Patan institutional institutional equities and retail wealth management. management. Our services services include equities, derivatives, e-broking, portfolio management, mutual funds, commodities, IPO’s and depository services.
In March 2006, AQ Research, a firm that analyses the accuracy of a broker’s research call, declared Motilal Oswal Securities the best research house for Indian stocks.
Research is the solid foundation on which Motilal Oswal Securities advice is based. Almost 10% of revenue is invested on equity research and we hire and train the best resources to become advisors. At present we have over 35 anal analys ysts ts rese resear arch chin ing g ov over er 15 sect sector ors. s. From From a fund fundam amen enta tal, l, tech techni nica call and and derivatives research perspective; Motilal Oswal's research reports have received wide coverage in the media (over a 1000 mentions last year).
Motilal Oswal Securities has witnessed rapid organic growth due to favorable market conditions as well as efforts put in by the company itself. FY05 and and FY06 FY06 saw saw the compa company ny grow grow inor inorga ganic nicall ally y throu through gh acqu acquisi isitio tion n of five five significant regional broking firms from Andhra Pradesh, Karnataka, Kerala, Gujrat and UP.
Over Over a period period of time many more regiona regionall brokin broking g firms firms may be
acquired to gain solid footing in various regions of India. The company has also established a base in the UAE to address the needs of the overseas audience.
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S.K.School of Business Management,Patan Management,Patan Motilal Oswal Securities Ltd. was founded in 1987 as a small sub broking unit, with just two people running the show. Focus on customer-firstattitude, ethical and transparent business practices, respect for professionalism, researc research-ba h-based sed value value investin investing g and implemen implementati tation on of cutting cutting-edg -edgee technolo technology gy have enabled us to blossom into an almost two thousand-member team.
Our institutional business unit has relationships with almost all leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report we were rated as one of the top-10 brokers in terms of business transacted for FIIs
The retail business unit provides equity investment solutions to more than 1,75,000 investors through over 1000 outlets spanning 375 cities and 24 states. These solutions are provided by a force of over 2000 employees and over 1000 10 00 Busin Business ess Asso Associa ciates tes.. We provi provide de advic advice-b e-bas ased ed brok broking ing (equ (equiti ities es and deriv derivat ative ives), s), po portf rtfol olio io manag managem emen entt serv service icess (PMS) (PMS),, e-Bro e-Brokin king, g, depo deposit sitor ory y services, commodities trading, IPO and mutual fund investment advisory services.
Our Value PMS Scheme has demonstrated very strong performance backed by our single-minded focus on research-based value
investing and the experience and management of Mr. Raamdeo Agrawal – an acknowledged expert in value investing. 11
S.K.School of Business Management,Patan Management,Patan
Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Managing Managing Director, is now in its eleventh year. Investors keenly await this annual study for the wealth of information it has on how companies created wealth during the preceding five years.
The organization finds its strength in its team of young, talented and confident individuals. Qualified professionals carry out different functions under the the able able lead leader ersh ship ip of its its prom promot oter ers, s, Mr. Mr. Mo Moti tila lall Oswa Oswall and and Mr. Mr. Raam Raamde deo o Agrawal. Stringent employee selection process, focus on continuous training and adoption of best management practices drive the quest to achieving our Core Purpose and Values.
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S.K.School of Business Management,Patan Management,Patan
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MOSt Vision
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S.K.School of Business Management,Patan Management,Patan
MOSt Guiding Principles & Core Values :Customer interest is paramount Ethical and transparent business practices Respect for professionals, associates and business partners Research based value investing Cutting edge technology to ensure world-class customer service
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S.K.School of Business Management,Patan Management,Patan
MOSt History & Milestones
The story of Motilal Oswal Securities Ltd (MOSt) goes back many years, when Mr. Motilal Oswal and Mr. Raamdeo Agrawal met each other as students in a Mumbai suburban hostel in the early eighties. Both the young chartered accountants hailing from a rural & an unpretentious background had a common dream viz 'to build a professional organization with strong value systems, to provide reliable & honest investment advice to investors'. Thus was born their first enterprise called "Prudential Portfolio Services" in 1987.
2009:Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for creating India's largest dealing room in Mumbai MOSL was 'Rated No.1 – Best recommendations recommendations Mid & Small Caps' and won awards in 3 out of 4 categories categories at the Starmine India Broker Rankings 2009 from Thomson Reuters
2008 :-
MOSL creates one of India's largest Equity Dealing & Advisory rooms, spre spread ad ov over er 26 26,0 ,000 00 sq ft in Mala Malad, d, Mu Mumb mbai ai Mo Moti tila lall Oswa Oswal' l'ss Indi Indiaa Busi Busine ness ss Excellence Fund raised USD 125 million, 25% higher than the initial target of USD 100 million D & B survey rates MOSL as India's top Broking House in terms of 15
S.K.School of Business Management,Patan Management,Patan total number of trading terminals MOSL alliance with IDBI Bank to offer Online Trading Services Services Asia Money Brokers poll 2007 rates Motilal Oswal Securities Ltd. - Best Overall Country Research - Local Brokerage
2007 :-
The Strategic partnership between MOSL and SBI - EZtrade - reaches reaches an important important milestone milestone i.e. In less than than a year year it has managed managed to sign up more than than 10,000 customers customers Starts Starts Knowledge First First campaign campaign Motilal Oswal was percieved as the most Research driven stock trading player - Starcom Mediavest Survey Introduces a separate brand for Private Client Group - Purple Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagges Globoil India's prestigious 'Outstanding Commodity Broking House 2007' Award Motilal Oswal Financial Services ltd. gets listed on the BSE & NSE. Mr. Mr. Mo Moti tila lall Oswa Oswall - Chai Chairm rman an and and Mana Managi ging ng Dire Direct ctor or has has been been appointed as a member of the Managing Committee of Indian Merchant Chambers. Motilal Oswal Financial Services Ltd files RHP with SEBI for an IPO Motilal Oswal Financial Services Ltd. features as a case study in Harvard Business School Motilal Oswal Financial Services Ltd ties up with Punjab National Bank to offer online trading to its customers.
2006 :• Organizes the second India Conference with Bear Stearns New York featuring
disc discus ussio sion n panel panelss and and pres present entati ation onss by prom promine inent nt bu busin sines esss leade leaders rs and and senio senior r 16
S.K.School of Business Management,Patan Management,Patan management management of Indian companies in banking, banking, technology, technology, healthcare, consumer, oil and gas, infrastructure and other key sectors. • Launches the India Business Excellence Fund (IBEF), a US$ 100 mn India focused Private Equity Fund. • Investment Banking business advises Aban in their majority controlling stake of Sinvest ASA – one of the largest investment banking deals of 2006. • Places 9.29% with two leading private equity investors - New Vernon Private Equity Limited and Bessemer Venture Partners. • Issues 14% of company’s equity to employees as ESOPs. • Acquires a leading south Indian brokerage brokerage firm - Peninsular Capital Markets. Also acquires 3 more brokerage firms in UP and Gujarat. • Enters Private Equity and Investment Banking businesses. • Value PMS gives 390% returns to its investors between Feb 2003 and March 2006. • Relaunches its e-Broking service through a nationwide campaign. First advice based online trading proposition in the Indian markets. • Another milestone in distribution – over 1000 outlets, over 375 cities, serving over 1,75,000 customers. • Employee base crosses 2000 and Business Associate base crosses 1000.
2005 :17
S.K.School of Business Management,Patan Management,Patan • Organises the first India Conference with Bear Stearns in New York. India’s
largest such conference of its kind in the US. • Asia Asia money money Broker Brokerss Poll Poll 20 2005 05 rates rates Mo Motil tilal al Oswal Oswal Secu Securit rities ies - Best Best Lo Loca call Brokerage, MOSt Independent Research House, Best in Sales and Service. • Laun Launch ches es two two new new Port Portfo foli lio o Mana Manage geme ment nt Sche Scheme mess - Valu Valuee Hedg Hedgin ing g for for derivatives and Discover Value for the Rs. 5 lakh to Rs. 50 lakh category. • Acquires local brokerage Gayatri Capitals from Andhra Pradesh and Varghese from Karnataka. • Deepest distribution in the stock broking segment with 700 outlets in 320 cities and 1,20,000 customers.
2004 :• Presence expanded to 270 outlets in 150 cities and 20 states.
• Value PMS delivers a whopping 160% post tax returns for the period ended April • Bulls Eye PMS - A momentum based PMS launched. • Start of the Solid Research Solid Advice campaign.
2003 :• Enters the mutual fund and IPO distribution business.
• MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal as the Portfolio Manager. Uniquely structured performance related fees. 18
S.K.School of Business Management,Patan Management,Patan • Inqu Inquir iree team team is succ succes essf sful ul in capt captur urin ing g the the up uptr tren end d in Bank Bankin ing, g, Auto Auto and and Infrastructure sectors. • Received the Asia Money award for the Best Overall Domestic Research HouseMega funds. • Crossed 15,000 Depository accounts. • 9 own branches setup at 7 cities to provide Equity Advisory Services. More in the pipeline. • 150 outlets in 110 cities across 18 states & one Union Territory in India manned by 1000 people servicing over 15,000 Retail and Institutional Investors.
2002 :• Mr. Navin Agarwal, Head of Equity Research & Institutional sales, inducted in the
Board of Directors. • MOSt MOSt cons consol olid idat ates es its its retai etaill op oper erat atio ions ns & up upgr grad ades es its its IT / Back Back Offi Office ce infrastructure to cater to its growing network of branches, Franchisees and Channel Partners. • Received the Asia Money Award - 2nd Best among Indian Brokerage firms. • Retail network completes coverage of 100 cities in India. • Direct servicing of HNI clients is initiated. • Crosses 10,000 Depository accounts.
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S.K.School of Business Management,Patan Management,Patan 2001 :• Legendary marketing guru Shunu Sen’s services taken to revitalise retail marketing
strategy and branding efforts. • Starts offering Derivatives products and advisory services on both BSE as well as NSE.
2000 :• Received the Asia Money award for the Best Domestic Equity house.
• Both Mr. Motilal Oswal and Mr. Raamdeo Agrawal receive Rashtriya Samman Patra from Central Board of Direct Taxes for being amongst the top 50 tax payers in India from FY94-FY98. • Acquires its 100th Franchisee / Channel Partner and emerges as a leading player in the Indian Broking Sector. • Becom Becomes es a Depo Deposit sitory ory Parti Partici cipa pant nt of Centra Centrall Depos Deposito itory ry Serv Service icess Limite Limited d (CDSIL).
1999 :-
• Mr. Raamdeo Raamdeo Agrawal Agrawal starts starts attendin attending g legenda legendary ry billiona billionaire ire investo investorr Warren Warren Buffett’s Annual General Meetings of Berkshire Hathway Inc. He still continues to attend it every year. • Th Thee Weal Wealth th Creat Creation ion Study Study starte started d in 19 1996 96 culmi culmina nate tess into into Weal Wealth th Creati Creation on Seminar and Awards function in 1998. 20
S.K.School of Business Management,Patan Management,Patan • First Stock Broking house to brand its services as a research and advice based broker. • “Wealth Creation” Campaign started. • www.MotilalOswal.com launched. First broking house in India to go on the web. • Becomes Becomes a Deposito Depository ry Particip Participant ant of National National Securit Securities ies Deposito Depository ry Limited Limited (NSDL). • Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide, on its Board to Directors to shape HR initiatives.
1998 :• Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.
1996 :• Wealth Creation Study started. First of its kind study initiated to identify biggest
and fastest wealth creating companies in Indian Stock markets.
1995 :• “Motilal Oswal” gets incorporated as Motilal Oswal Securities Ltd.
1994 :-
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S.K.School of Business Management,Patan Management,Patan • MOSt acquires NSE Membership and plans for major expansion of its retail
network. • Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office in South Mumbai with bigger and better quality infrastructure than the corporate office. Since then nearly 20% of revenue is allocated to research. First Domestic Stock broking house to have such a strong Research focus. • ”Motilal Oswal” enters Institutional Broking business.
1990 :• Afte Afterr just just thre threee year yearss in the the bu busi sine ness ss,, ”Mot ”Motil ilal al Oswa Oswal” l” is form formed ed thro throug ugh h
acquisition of membership on The Bombay Stock Exchange (BSE). Three more memberships taken in later years.
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People behind the organization
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S.K.School of Business Management,Patan Management,Patan
Mr. Motilal Oswal
Chairman and Managing Director Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is an memberr of Institut membe Institutee of Charte Chartered red Accountants of India and started the business along with the co prom promote oterr Mr Mr.. Ra Raam amdeo deo Aga Agarw rwal al in 198 1987.B 7.Busi usine ness ss Ad Admi mini nistr strati ation on is hi hiss for forte, te, Ho Hones nesty ty,, transparency and client goodwill form the core of his business practice. “Service is required in everything, in research, in execution and in settlement. It is going to be the key to survival. If you give good service and value to your clients, it ill translate into good business.” This has been a strong belief of Mr. Motilal Oswal and he has not only practiced practiced it himselff but also made efforts to inculcat himsel inculcatee similar values in the employees of the organizat organization. ion. He had been elected as a Director of BSE and joined its governing board in 1998. He is currently a member of various committees of CDSIL and SEBI. SEBI. He is currently a member of the NSE committee for F&O.
Mr. Raamdeo Agrawal
Joint Managing Director
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S.K.School of Business Management,Patan Management,Patan Mr. Raamdeo Agrawal is the co-promoter of Motilal Oswal Securities Ltd. A member member of the Institute of Chartered Accountants Accountants of India & an equity research stalwart, stalwart, he is the man behind behind the strong strong research research capabil capability ity at MOSt. MOSt. He is respect respected ed by all in the researc research h and broking industry for his valuable insights on issues related to equity research. His firm belief in “Value-Investing”, as practiced by the legendary Warren Buffett and Charlie Munger, forms the core of MOSt investment philosophy. He is a member of the National Committee on Capital Markets of the Confederation of Indian Industry.
He
authors
t he
annual
Motilal
Oswal
Wealth
Creation
Study
.
He has also featured on Wizards of Dalal Street on CNBC TV18 and is much sought after by the media for his expert views on the markets.
Mr. Navin Agrawal Director Mr. Navin Agarwal is on the Board of Motilal Oswal Financial Services Limited. He is a member of Institute of Chartered Accountants of India, Institute of Cost & Works Accountants of
India,
and
Institute
of
CompanySecretariesofIndia.
He heads the Institutional Broking business and has been instrumental instrumental in building a market leading position with domestic domestic and foreign institutional institutional investors. Under his leadership, leadership, the firm has been rated as The Best Indian Brokerage House by Asia money 2005. Leveraging on the dominant positioning in institutional business, he has also been instrumental in building
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S.K.School of Business Management,Patan Management,Patan an Institutional Derivatives business when derivative products were introduced in the Indian markets. Here again, a market leading position has been established by MOSL.
As a member of the board, Mr. Agarwal believes in leveraging the core strengths of a strong brand, a vast distribution network and unmatched research capabilities and has been closely involved in the creation of the investment banking and private equity businesses. He believes that the core strengths of the firm can be further leveraged to establish itself as the most preferred
Indian
financial
services
organisation.
He has recently authored ‘Money Monarchs’ – a book on the stock markets.
Management Team
MOSt MOSt mana manage geme ment nt team team is regu regula larl rly y enga engage ged d in find findin ing g ways ways to impr improv ovee operational efficiencies and customer satisfaction. You will find CAs, CFAs, ICWAs, CSs, MBAs and IT professionals managing crucial functions, to bring you best products and services - from research & advice to trade execution & settlement. At MOSt we practice meritocracy and each of the team members is provided extensive training.
Training & Manpower Development MOSt conducts various training and development programs regularly to enhance the capabilities of its team. As much as 5% of the salary bill is spent on such programs, which is amongst the highest for a broking organization in India. MOSt is truly a learning organization with lead being taken by the Directors, who regularly participate participate in top management learning programs like Strategic Management Program at Indian School of Business, Hyderabad, Strategy Summits 25
S.K.School of Business Management,Patan Management,Patan with wi th Man Manage ageme ment nt Gur Gurus us li like ke To Tom m Pe Pete ters rs and Dr Dr.. Le Leste sterr Th Thur urow, ow, De Dean, an, Sl Sloan oan Sc Schoo hooll of Management, (MIT) and Brand Management Seminar by Al Ries etc.
MOSt Wealth Creation Study and Awards function MOSt Wealth Creation Study and Awards function has become a key event in the Indian Capital Market. The Wealth Creation Study, initiated, in 1996 is widely appreciated in the investment community and the Indian Corporate Sector. This annual study identifies the fastest and the biggest wealth creators in the Indian markets markets over the last 5 years and felicitates felicitates them at a public event, attended by several leading investors and equity specialists. The 9th Wealth Creation Awards function was held at the Grand Hyatt, Mumbai on January, 2005.
SERVICES PROVIDING BY MOSL
Motilal Oswal Securities Ltd. providing different different kind of services services to its clients. they are as followed
Advised based Broking on BSE / NSE ( Cash & Derivatives )
Portfolio Management Services ( PMS )
Internet Trading ( E Broking )
Timely & Researched based Investment and Trading Ideas
Depository Services ( MODES )
Advised based Mutual Fund
Commodities
IPOs.
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S.K.School of Business Management,Patan Management,Patan
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Advise Based Broking Motilal Oswal Securities Ltd. providing advice based equity trading to
its clients. MOSL providing NSE, BSE and F & O trading facility to its customers. It provides mainly broking broking premier Brokerage Service based on fundamental research. Derivati Derivatives ves (Future (Futuress & Options Options)) are ideal ideal instrume instruments nts to protect protect you yourr portfoli portfolio o agai agains nstt risk. risk. You You can can trade trade with with inde index x move movemen ments, ts, hedg hedgee and and levera leverage ge yo your ur portfolio by limiting risk but keeping your upside unlimited. Its research based advice is very successful in market. They use Orian software for trading, and get connectivity through V-sat facility. They are used Bharti Televenture’s V-sat connection. MOSL have NSE, BSE registration.
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Depository Services
In the times of T+2 having a demat account linked to your trading account becomes really convenient. The non-trading members also can avail of our Depository services. You receive regular account reports and an efficient service at all times. MOSt is a member of both NSDL and CDSL and the service is available at all our outlets in India.
Depository Service Provided By MODES
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S.K.School of Business Management,Patan Management,Patan Account Opening Dematerialization Re materialization Account Transfer Transmission Nomination Pledging And Hypothecation Account Closures
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. MOSt E-Broking
There is nothing more exhilarating , more daring and more rewarding than making the right trade at the right time. Welcome to our E-Broking platform which brings you a world class experience of online investing. Buying and selling of shares is now just a click away click away.
A mul multit titude ude of reso resource urcess like live quot quotes, es, char charts, ts, rese research arch,, advi advice ce and onli online ne assistance helps you take informed decisions. Our robust risk management system and 128 bit encryption gives you a complete security about money, shares, and transaction documents.
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S.K.School of Business Management,Patan Management,Patan
MOStPMS
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Motilal Oswal Securities runs three types of PMS schemes meant for investors with different investment preferences. While our values PMS scheme is meant for investors with long-term interest in the market, our Bull’s Eye PMS scheme is meant for investors who want to take moderate risk and generate healthy returns from the equity market from time to time. Discover Value PMS Scheme is create wealth for investors, which comes through Consistent over long term. Its clients, investor community and some of the most prestigious publications like Asia money and Institutional Investors amongst others acknowledge Motilal Oswal Securities as one of the leading research based equity broking broking house in India. With about 15% of our revenue inves investe ted d in our resea researc rch h capab capabil ilit ity, y, we have have some some of the the sharpe sharpest st resou resourc rces es that that produc producee excellent research insights on companies. The same is then passed to our highly rated portfolio management and investment advisory team that works on its personalized investment strategy.
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MOSt Commodities Investors looking for a fast-paced dynamic market with excellent liquidity can NOW trade in Commodity Futures Market. The Commodity Exchange is a Public Market forum and anyone can play in these vital Commodity Markets. Motilal Oswal Commodities Broker (P) Ltd can certainly certainly be your point of entry to the Commodity Markets. Markets. MOCB is a registered registered trading-cumclearing member of NCDEX. Participation is not difficult. All you need is to open an account with us. MOCB shall offer you advice on investments & strategy, provide research and contact you regularly with trading advice.
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S.K.School of Business Management,Patan Management,Patan •
MOSt Mutual To enable clients diversify diversify their investments investments Motilal Oswal Securities Limited has added MOSt mutual team is in close contact with various fund houses and another product in its bouquet and will now offer mutual funds. MOSt mutual team is in close contact with various fund houses and interactive sessions are held with fund managers. We will provide you regular updates on products and new schemes. Being one of the stock brokers we keep a close watch on the markets. Based on your risk appetite, investment horizon and your existing investments we will suggest investment in mutual fund schemes, which which are best, suited to you. The fund and scheme selection is done after an in-depth research on parameters like risk adjusted returns, rolling returns, volatility and portfolio churn. We advise a mature and long-term view on mutual fund investments. MOSt Mutual Mutual doesn't stop stop at just that, we go a step step further to ensure ensure that you get the right NAV, your dividends are credited on time and your account statements are regularly received. You will also receive our monthly newsletter on Mutual Funds "MOSt Mutual".
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S.K.School of Business Management,Patan Management,Patan
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ABOUT MUTUAL FUND. Introduction
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments instruments such as shares, debentures and other securities. securities. The income earned through these investments investments and the capital appreciation appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:
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S.K.School of Business Management,Patan Management,Patan Mutual Fund Operation Flow Chart.
ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:
Organisation of a Mutual Fund ADVANTAGES OF MUTUAL FUNDS The advantages of investing in a Mutual Fund are: Professional Management Diversification
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S.K.School of Business Management,Patan Management,Patan Convenient Administration Return Potential Low Costs Liquidity Transparency Flexibility Choice of schemes Tax benefits Well regulated
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How you can invest in a mutual fund There are two ways in which you can invest in a mutual fund. 1. A one-time outright payment If you invest directly in the fund, you just hand over the cheque and you get your fund units depending on the value of the units on that particular day. Let's say you want to invest Rs 10,000. All you have to do is approach the fund and buy units worth Rs 10,000. There will be two factors determining how many units you get. Entry load This is the fee you pay on the amount you invest. Let's say the entry load is 2%. Two percent on Rs 10,000* would Rs 200. Now, you have just Rs 9,800 to invest. NAV The Net Asset Value is the price of a unit of a fund. Let's say that the NAV on the day you invest is Rs 30. 33
S.K.School of Business Management,Patan Management,Patan So you will get 326.67 units (Rs 9800 / 30).
2. Periodic investments This is referred to as a SIP. That means that, every month, you commit to investing, say, Rs 1,000 in your fund. At the end of a year, you would have invested Rs 12,000 in your fund. Let's say the NAV on the day you invest in the first month is Rs 20; you will get 50 units. The next month, the NAV is Rs 25. You will get 40 units. The following month, the NAV is Rs 18. You will get 55.56 units. So, after three months, you would have 145.56 units. On an average, you would have paid around Rs 21 per unit. This is because, when the NAV is high, you get fewer units per Rs 1,000. When the NAV falls, you get more units per Rs 1,000.
What's a mutual fund SIP?
SIP is an investment option that is presently available only with mutual funds. funds. The other investment investment option option comparable to SIPs is the recurring 34
S.K.School of Business Management,Patan Management,Patan deposit schemes from Post office and banks. Basically, under an SIP option an investor commits making a regular (monthly) investment in a particular mutual fund.
Why you should invest in a Systematic Investment Plan? 1.
Discipline The cardinal rule of building your corpus is to stay focused, invest regularly and maintain discipline in your investing pattern. A few hundreds set aside every month will not pinch your monthly disposable income too much. You will also find it easier to part with a few hundreds every month rather than investing a big lump sum in one go.
2.
Power of compounding Investment gurus always recommend that one must start investing early in life. One of the main reasons for doing that is the benefit of compounding. To explain with an example. Person A started investing Rs 10,000 per year at the age of 30. Person B started investing the same amount every year at the age of 35. When they attained the age of 60 respectively, person A had built a corpus of Rs 12.23 lakh while person B’s corpus was Rs 7.89 lakh. A rate of return of 8% compounded has been assumed. So the difference of Rs 50,000 in amount invested made a difference of more than Rs 4 lakh to their end corpus. That difference is due to the effect of compounding. The longer the compounding compounding period, the better for you. Now instead of investing Rs 10,000 each year, suppose person A invested Rs 50,000 after every 5 years, starting at the age of 35. The total amount invested, thus remains the same, which is Rs 3 lakh. However, when he is 60, his corpus will be Rs 10.43 lakh. Again, he loses the advantage of compounding in the early years.
3.
Rupee cost averaging This is especially true for investments in equities. When you invest the same amount in a fund at regular intervals over time, you buy more units when the price is lower. Thus, you would reduce your average cost per share or per unit over time. This strategy is called 'rupee cost averaging'. With a sensible and long-term 35
S.K.School of Business Management,Patan Management,Patan investment approach, rupee cost averaging can smooth out the market's ups and downs and reduce the risks of investing in volatile markets.
Some examples: HDFC MUTUAL FUND SCHEME: HDFC CAPITAL CAPITAL BUILDER BUILDER FUND Returns SIP
Normal
5 year
41.81% 19.39%
3 year
69.28% 56.15%
1 year
86.47% 47.62%
PRU ICICI MUTUAL FUND SCHEME: PRU ICICI GROWTH FUND Returns
SIP
Normal
5 year
27.60%
7.37%
3 year
44.89%
35.3%
1 year
54.39%
13.89%
RELIANCE MUTUAL FUND
Returns
SIP
Normal
5 year
52.17%
20.19%
1 year
80.34%
37.89%
36
SCHEME: RELIANCE GROWTH FUND
S.K.School of Business Management,Patan Management,Patan
4.
Convenience This is a very convenient way of investing. You have to just submit cheques with the completed enrollment form. The mutual fund will deposit the cheques on the requested date and credit the units to one’s account and will send the confirmation for the same. During the last year the economic crisis is their this particular time many people loose their money in capital market but which person invest his or her money in mutual fund’s SIP he or she keep a great return on his or her investment
We see the the return & performance performance of this SIP’s during the last year .
PERFORMANCE OF SIP’s June2008-May2009 Birla Sun Life 95 Fund - Gr
37
Franklin India Flexi Cap Fund - Gr
Date
NAV
unit
Date
NAV
unit
10/6/2008
196.03
5.1
10/6/2008
21.2997 46.95
10/7/2008
181.92
5.5
10/7/2008
20.0461 49.89
11/8/2008
198.25 5.04
11/8/2008
21.3618 46.81
10/9/2008
193.33 5.17
10/9/2008
20.6307 48.47
10/10/2008 149.98 6.67
10/10/2008 15.8282 63.18
10/11/2008 151.57
6.6
10/11/2008
15.943
62.72
10/12/2008 149.44 6.69
10/12/2008
14.796
67.59
12/1/2009
152.69 6.55
12/1/2009
14.3075 69.89
10/2/2009
152.71 6.55
10/2/2009
14.5347
68.8
S.K.School of Business Management,Patan Management,Patan 12/3/2009
140.73 7.11
12/3/2009
12.5864 79.45
13-042009
170.73 5.86
13-042009
16.3478 61.17
11/5/2009
181.56 5.51
11/5/2009
17.6947 56.51
Summary :
Summary :
Amount Invested : 12,000.00
Amount Invested : 12,000.00
Installment Amount : 1,000.00
Installment Amount : 1,000.00
No of Months : 12
No of Months : 12
Total Amount : 15,958.00 (as on 29/05/2009)
Total Amount : 16,037.00 (as on 29/05/2009)
Return : 71.5%
Return : 73.05%
HDFC Growth Fund Gr Date
unit
Date
NAV
unit
10/6/2008
58.851 16.99
10/6/2008
127.015
7.87
10/7/2008
54.736 18.27
10/7/2008
119.266
8.38
11/8/2008
60.993
11/8/2008
134.292
7.45
10/9/2008
59.749 16.74
10/9/2008
131.072
7.63
10/10/2008 46.063 21.71
10/10/2008
98.228
10.18
10/11/2008 45.635 21.91
10/11/2008
98.71
10.13
10/12/2008 41.544 24.07
10/12/2008
90.241
11.08
12/1/2009
25.38
12/1/2009
88.378
11.32
39.361 25.41
10/2/2009
90.734
11.02
10/2/2009 38
NAV
HDFC Top 200 - Gr.
39.4
16.4
S.K.School of Business Management,Patan Management,Patan 12/3/2009
34.273 29.18
12/3/2009
80.226
12.46
13-042009
42.417 23.58
13-042009
102.33
9.77
11/5/2009
110.933
9.01
11/5/2009
45.65
21.91
Summary :
Summary :
Amount Invested : 12,000.00
Amount Invested : 12,000.00
Installment Amount : 1,000.00
Installment Amount : 1,000.00
No of Months : 12
No of Months : 12
Total Amount : 14,903.00 (as on 29/05/2009)
Total Amount : 16,207.00 (as on 29/05/2009)
Return : 51.29%
Return : 76.38%
Reliance Banking Fund - Gr
39
Tata Pure Equity Fund - Gr
Date
NAV
unit
Date
NAV
unit
10/6/2008
47.46
21.07
10/6/2008
71.1592 14.05
10/7/2008
44.69
22.38
10/7/2008
66.616
15.01
11/8/2008
54.0528
18.5
11/8/2008
71.568
13.97
10/9/2008
51.9421 19.25
10/9/2008
68.4774
14.6
10/10/2008 41.0528 24.36
10/10/2008
50.929
19.64
10/11/2008 42.5711 23.49
10/11/2008 51.6928 19.35
10/12/2008 38.1211 26.23
10/12/2008 48.8668 20.46
12/1/2009
39.5246
25.3
12/1/2009
48.261
10/2/2009
38.0972 26.25
10/2/2009
48.8393 20.48
12/3/2009
30.7379 32.53
12/3/2009
44.2758 22.59
20.72
S.K.School of Business Management,Patan Management,Patan 13-042009
41.1809 24.28
13-042009
52.8859 18.91
11/5/2009
45.5605 21.95
11/5/2009
55.1333 18.14
Summary :
Summary :
Amount Invested : 12,000.00
Amount Invested : 12,000.00
Installment Amount : 1,000.00
Installment Amount : 1,000.00
No of Months : 12
No of Months : 12
Total Amount : 17,581.00 (as on 29/05/2009)
Total Amount : 15,377.00 (as on 29/05/2009)
Return : 104.02%
Return : 60.27%
We see the return of this six mutual fund’s SIP the return of every SIP is more than 50% therefore we say that this is the best instrument for the invest in mutual fund during the this type of global economic crisis.
•
How to invest in SIP?
Step 1: Select a mutual fund scheme of your choice with the payment option as SIP Step 2: Decide the Investment periodicity (frequency of making payments). You can choose to make your investment on a monthly or quarterly basis. Step 3: Select the minimum investment amount. For instance, if you choose to invest Rs 12,000 every year with a monthly SIP Option. Therefore
40
S.K.School of Business Management,Patan Management,Patan you would be investing Rs 1,000 every month in your fund. By the end of a year, you would have invested Rs 12,000 in your fund. Step 4: The amount gets converted into units, depending on the Net Asset Value (NAV). NAV is the market value per unit of a fund. If the NAV in the first month is Rs 20, you will get 50 units. Similarly in the next month if the NAV is Rs 25, you will get 40 units. The following month if the the NAV NAV is Rs 18, 18, then then yo you u will will get get 55.5 55.56 6 unit units. s. So So,, afte afterr thre three e months, you would have 145.56 units. On an average, you would have paid around Rs 21 per unit. Step 5: The units get accumulated over a period of time. You can stay invested till the time you wish and redeem your units when you wish to exit from the scheme. The units are redeemed at the market value (NAV) and you get back your money with returns.
Systematic investment plan (in details)
We have already mentioned about SIPs in brief in the previous pages but now going into details, we will see how the power of compounding could benefit us. In such case, every small amounts invested regularly can grow substantially. SIP gives a clear picture of how an early and regular investment can help the investor in wealth creation. Due to its unlimited advantages SIP could be redefined as “a methodology of fund investing regularly to benefit regularly from the stock market volatility. In the later sections we will see how retu returns rns gene generat rated ed from from some some of the SIPs SIPs have have ou outpe tperf rform ormed ed their their benchmark. But before moving on to that lets have a look at some of the top performing SIPs and their return for 1 year: 41
S.K.School of Business Management,Patan Management,Patan
Scheme Reliance diversified power sector retail Reliance regular savings
Amount
NAV
1000
equity principal global
1000
opportunities fund DWS investment
1000
opportunities fund
1000
35.31
BOB growth fund
1000
42.14
Total Amount
62.74
NAV Date 30/5/200 8
14524.07
22.20 8
30/5/200 8
13584.944
18.86
30/5/200 8
14247.728
30/5/200 8 30/5/200 8
13791.157 13769.152
In the above chart, we can see how if we start investing Rs.1000 per month then what return we’ll get for the total investment of Rs. 12000. There is reliance diversified power sector retail giving the maximum returns of Rs. 2524.07 per year which comes to 21% roughly. Next we can see if anybody would have undertaken the SIP in Principal would have got returns of app. 18%. We can see reliance regular savings savings equity, DWS investment opportunities opportunities and BOB growth fund giving returns of 13 13.20 .20%, %, 14 14.92 .92%, %, and and 14 14.74 .74% % respe respecti ctive vely ly which which is grea greater ter than than any any othe other r monthly investment options. Thus we can easily make out how SIP is beneficial for us. Its hassle hassle free, it forces forces the investo investors rs to save and get them them into the habit habit of saving. Also paying a small amount of Rs. 1000 is easy and convenient for them, thus putting no pressure on their pockets. Now we will analyze some of the equity fund SIP s of Birla Sunlife with BSE 200 and bank fixed deposits In a tabular format as well as graphical.
Scheme Name 42
NO. OF
Original
Returns at Ret
FUND FU
S.K.School of Business Management,Patan Management,Patan INSTALME NTS Birla SL tax relief '96 Birla SL equity fund Birla frontline equity fund
inv
BSE 200
RETURNS
144
144000
553190
1684008
114
114000
388701
669219
66
66000
156269
181127
In the above case, we have taken three funds of Birla sunlife namely Birla sunlife tax relief ’96, Birla sunlife equity fund and Birla sunlife frontline equity fund. All these three funds follow the same benchmark ie; BSE 200. Here, we have shown how one would have benefitted if he would have put his money into these schemes since their inception. And the amount even is a meager Rs. 1000 per month. Starting from Birla frontline equity fund, we could spot that if someone would have invested Rs. 1000 per month resulting into total investment of Rs. 66000 then it would have amounted to rs.156269 if invested in BSE 200 whereas the fund would have given a total return of Rs 181127. Now moving next to Birla sunlife equity 43
S.K.School of Business Management,Patan Management,Patan fund, a total investment investment of 114000 for a total of 114 months at BSE 200 would have given a total return of Rs. 388701 whereas the fund gave a total return of Rs. 669219, nearly double the return generated at BSE 200. And now the cream of all the investments, Birla sunlife tax relief ’96. A total investment of Rs. 144000 for a period of 12 years at BSE 200 would have given total returns of just Rs. 553190 but the Birla sunlife tax relief ’96 gave an unbelievable total return of Rs 1684008. Thus Th us the abov abovee case case very very well well expla explain inss the po powe werr of compo compoun undi ding ng and and early early investment. We have seen how a meager amount of Rs. 144000 turned into Rs. 1684008. 1684008. It may appear unbelievable unbelievable for many but SIPs have turned this into reality and the power of compounding is speaking loud, attracting more and more investors to create wealth through SIPs.
OBJECTIVE OF STUDY
•
To find out awareness and interest about Mutual fund’s SIP in Mehsana city.
Sub - Objective :44
S.K.School of Business Management,Patan Management,Patan
Which income class people prefer Mutual fund’s SIP?
Why they prefer Mutual fund’s SIP?
Which option they they choose alternate alternate of Mutual fund’s SIP?
How much they aware of Mutual fund’s fund’s SIP?
Which professional people select Mutual fund’s SIP?
What problems faced when choose Mutual fund’s SIP?
What benefit benefit they take from Mutual fund’s fund’s SIP?
What factors they take mind, when invest money in Mutual fund’s SIP?
What is their objective to invest their money in Mutual fund?
Are they agree with Mutual fund’ SIP is safe than other?
Are they agree with Mutual fund giving more return than other securities?
Methodology The first step of my project is to take basic training about MF. After taken basically training, doing the survey of awareness of Mutual fund fund Serv Servic icee is to peop people le the the qu ques esti tion onna nair iree the the qu ques esti tion on for for the the 45
S.K.School of Business Management,Patan Management,Patan questionnaires are prepared after going through pamphlets, research reports, fact sheets of mutual funds.
The next step after the questionnaires are prepared is to collect the the data data.. To fill fill the the qu ques esti tion onna nair ires es the the surv survey ey was was cond conduc ucte ted d in commercial area of Mehsana city the source for filling questionnaires are doctors, ONGC customers, Business Persons, Government Servant interested in equity and mutual fund or invest huge in debt or real assets business etc.
After that the questionnaire are analyzed & the people who are interested in MF are found out. After that the interested people are explained about the MF was given. The last step is to prepare the report what have done practically & give the conclusion.
46
S.K.School of Business Management,Patan Management,Patan
47
S.K.School of Business Management,Patan Management,Patan
MARKET SURVEY During the project survey was conducted in commercial city of North Gujarat at Mehsana area of Doctors, Business Persons, ONGC officers, Government Officers etc.
•
INVESTORS OF MUTUAL FUND (Total based 100)
48
S.K.School of Business Management,Patan Management,Patan
Scale
Respondent
Percentage (%)
YES
65
65%
NO
35
35%
Total
100
100%
Investment in Mutual fund 70% 60% 50% % 40% n 30% i 20% 10% 0%
65%
35% Y N YES
NO Respondent
INTERPRETATION 49
S.K.School of Business Management,Patan Management,Patan In My survey I found that most of people of Mehsana city invest invest in Mutual fund.65 % people people investing investing in Mutual Mutual fund. fund. Only 35 % people don't investing in Mutual fund. This shows that the market of Mehsana city is potential; due to this reason most of company going to launch its branch in Mehsana city.
OPTION SELECT FOR INVESTMENT RATHER
•
THAN MUTUAL FUND.
Scale
Respondent Pe Percentage (%)
T
50
BANK
6
17%
STOCK MARKET
7
20%
GOVT.SECURITIES
2
06%
COMMODITY
0
00%
POSTAL SCHEME
4
12%
REAL ESTATE
5
14%
PRIVATE PLAYER
0
00%
INSURANCE
6
17%
OTHER
5
14%
TOTAL
35
100%
T
T.
T
T
T
T T
T
T
S.K.School of Business Management,Patan Management,Patan
Option Select for Investment
20%
20%
17%
17%
15% % n i
14% 12%
14%
Stock Market Govt. Securi Se curities ties Commodity
10%
Postal Scheme
6%
Real Estate
5% 0%
Bank
0%
0%
Option select
Private Player Insurance Others
INTERPRETATION
Above graph shows that 20 % people select the stock market at time of investment, Then 17 % people are selecting the bank & insurance, Then 14 % are investing in real estate & others for investment, 12 % people are investing in postal scheme, only 6 % people are invested in Govt. securities, in mehsana people are not investing in commodity & private player saving scheme.
51
S.K.School of Business Management,Patan Management,Patan •
KNOWLEDGE KNOWLE DGE ABOUT A BOUT MUTUAL M UTUAL FUND’S SIP.
Scale
Respondent
Percentage (%)
YES
65
65%
NO
35
35%
Total
100
100%
Knowledge of Mutual fund's SIP 70% 60% 50% % 40% n 30% i 20% 10% 0%
65%
35% YES NO YES
NO Respondent
52
S.K.School of Business Management,Patan Management,Patan
INTERPRETATION
Above graph shows that when ask the question to the respondent they 65% people know about systematic investment plan they are know that this is the one instrument to investment in mutual fund their fore we say that there is a big scope for mutual fund company for investment in capital market in mehsana city.
•
FACTORS SELECTION FOR INVEST IN MUTUAL FUND’S SIP.
Scale
Respondent Percentage (%)
HIGHER RETURN
32
49%
LOW RISK
19
29%
EASY TO 11 INVEST c or se ec or n ves
n
OTHER
3
5%
TOTAL
65
100%
0% n
53
0%
29% 17%
0%
5% actor Selection
17%
s
Higher Return Low Risk Easy to invest Other
S.K.School of Business Management,Patan Management,Patan
INTERPRETATION
Most of investors like High Return from the MF and it are 49%. 29% people like MF due to low risk. 17 % people like mf in easy to invest. Only 5% people like MF for other reasons. Shows that the high return of MF is more liked by investors. Actually MF gives more return than than any any othe otherr inve invest stme ment nt.. MF give givess appr approx oxim imat atel ely y mini minimu mum m 25 % return.
PROBLEM FACE WHEN INVESTING IN MUTUAL FUND’S SIP.
•
54
S.K.School of Business Management,Patan Management,Patan
Scale
Respondent Percentage (%)
LACK OF FUND KNOWLEDGE
17
26%
LACK OF ADVERTISEMENT
7
11%
INVESTMENT PROCESS
16
25%
OTHER
25
38%
TOTAL
65
100%
Problem face Investing in MF's SIP 38%
40% 35% 30%
26%
25%
25% % 20% n i
15%
Lack of Adv. 11%
10% 5%
Invt. Process Other
0% Problem face
55
Lack of FK
S.K.School of Business Management,Patan Management,Patan
INTERPRETATION
Most of investors have a problem face when investment time. 26% people face a problem of lack of fund knowledge of MF. Then 11% face face a lack lack of adve advert rtis isem emen entt 1o 1oth ther er 25 25% % inve invest stor or face face a prob proble lem m in inve invest stme ment nt proc proces ess. s. A majo majorr prob proble lem m face facess in 38 38% % peop people le.. In othe other r problem like lock in period and entry load & exit load charges more people this problem face. •
MUTUALFUND’S SIP IS SAFE FOR INVESTMENT THAN SECURITY MARKET. Scale
Respondent Percentage (%)
56
STRONGLY AGREE
27
42%
AGREE
19
29%
NUTURAL
13
20%
DIS AGREE
4
6%
STRONGLY DIS AGREE
2
3%
TOTAL
65
100%
S.K.School of Business Management,Patan Management,Patan
Mutualfund's Mutualfund's SIP is safe for investment 50% 40% % n i
30% 20%
42%
STRONGLY AGREE AGREE
29%
NUTURAL
20%
DIS AGREE
10%
6%
3%
0%
STRONGLY DIS AGREE
Views of Respond Respondent ent
INTERPRETATION
People are fully agreed that SIP is right way for Investment in securities market. They all are aware about SIP.They also agree that Mutu Mu tual al fund fund give givess more more retu return rn.. Here Here 42 42% % peop people le said said that that they they are are strongly agree that MF is safe for investment & 29 % persons are agree that only SIP is right way to for investment in stock market. While 6% 57
S.K.School of Business Management,Patan Management,Patan people said that they are disagree and only 3% people said that they are strongly disagree with mutual fund is safe for investment.
•
Which Asset Management Company you select if you want to invest in Mutual fund’s SIP?
58
S.K.School of Business Management,Patan Management,Patan
Scale
Respondent Percentage (%)
SBI
10
10%
RELIANCE
32
32%
LIC
7
7%
UTI
1
1%
TATA
3
3%
HDFC
3
3%
PRUD.ICICI
6
6%
SUNDARAM
5
5%
DSP MERRIL LYNCH
1
1%
FIDELITY
4
4%
CHOLA MUTUAL FUND
3
3%
FRANKLIN TEMPELTON
6
6%
HSBC
5
5%
KOTAK MAHINDRA
5
5%
ABN AMRO
0
0%
STANDARD CHARTERED
3
3%
OTHER
6
6%
TOTAL
100
59
100%
S.K.School of Business Management,Patan Management,Patan
.
or nv.
32%
SB I
RELIANCE RELIANCE
LIC
UTI
TATA
HDFC
PRUD.ICICI
0% SUNDRAM
N I
DSP MERRILL LYNCH
15%
FIDELITY
C HO LA MUTUAL FUND FUND
FRANKLIN TEMPLETO N
10%
%
HSBC
7% 6%
6% 5%
6% 5% 5 %
ABN AMRO
4%
60
3% 3% 1%
KOT KO TAK MAHINDR A
3%
3%
1%
S TANDARD ANDA RD CHARTE C HARTERED RED
O THER
0%
S.K.School of Business Management,Patan Management,Patan
INTERPRETATION
61
S.K.School of Business Management,Patan Management,Patan Above graph shows that 32 % of people investor want to inve invest st in RELI RELIAN ANCE CE beca becaus usee rece recent ntly ly op open en the the Reli Relian ance ce long long term term equity fund and this co. are fundamentally very strong. Then 10 % people want to invest in SBI. 7 % people want to invest in LIC. And 6 % investor wants to invest in PRUD.ICICI, FRENKLIN TEMPLETON & Othe Otherr in BIRL BIRLA A INFRA FRA most ost like like.. 5 % peop peoplle want want to inve invesst in SUNDARAM, HSBC and KOTAK MAHINDRA. Only 4 % wants to FEDELITY. 3 % people want to invest in TATA, HDFC and CHOLA MF& STANDARD CHARTERD. 1 % people want to invest in UTI, DSP MERRIL LYNCH. In my survey no people want to invest in ABN AMRO MF scheme because people are not aware of this AMC.
•
How many time periods you would like to invest in Mutual fund’s SIP? 62
S.K.School of Business Management,Patan Management,Patan
YEARS
63
Respondent
Percentage (%)
1-2 YEARS
11
11%
2-3 YEARS
36
36%
3-4 YEARS
30
30%
4-5 YEARS
14
14%
>5 YEARS
10
10%
TOTAL
100
100
S.K.School of Business Management,Patan Management,Patan
INVESTMENT PERIOD 40%
36%
35% 30%
30%
1-2 YEA 2-3 YEA
25%
3-4 YEA
% 20% N I
10%
10%
10%
5% 0% YEARS
INTERPRETATION
64
4-5 YEA
14%
15%
>5 YEAR
S.K.School of Business Management,Patan Management,Patan People who are want to invest in long time they have two main options that whether hold with one MF’s SIP scheme with short term or long term. I am found that 36 % persons are investing tw0 to three years investment. 30% people want to investment in three or four year. 14% want want to four four to five five year year inve invest stmen ment. t. More More than than five five year year only only want to invest in Mutual fund.
•
What is your monthly Income?
65
10 %
S.K.School of Business Management,Patan Management,Patan
Income Level
66
Respondent
Percentage (%)
5000-10000
46
46%
10000-15000
26
26%
15000-20000
16
16%
20000-25000
5
5%
25000-30000
3
3%
30000-35000
1
1%
35000-40000
0
0%
40000-45000
1
1%
45000-50000
0
0%
> 50000
2
2%
TOTAL
100
100%
S.K.School of Business Management,Patan Management,Patan
INCOME LEVEL OF INVESTMENT 50% 46%
5000-100
40%
10000-15 15000-20
% n i
30%
20000-25 26%
25000-30
20%
30000-35 16%
35000-40
10%
40000-45 5%
0%
3%
45000-50 1% 0% 1% 0% 2%
> 50000
Income level
INTERPRETATION
Most of investors of Mehsana city are of 5000 - 10000 Rs Income level. Second level of income is 10000-15000. Total quantity of 67
S.K.School of Business Management,Patan Management,Patan its invests is 54 % with good income. It shows that the market of Mehsana is really potential for securities market.
HYPOTHESIS ANALYSIS
whether 60% of Customer aware of Systematic investment plans of Mutual fund.
P = 0.60 Q = 0.40 n = 100 α = 0.10 P1= 65/100=0.65 H0: P=0.60 (60% of the customer are aware of Mutual fund’s SIP) H1: P≠0.60 (60% of the customer are not aware of Mutual fund’s SIP)
σ^x = √ (PQ/N) 68
S.K.School of Business Management,Patan Management,Patan
= √ [(0.60) (0.40)/ 100] = √0.04899 = 0.049 UL/LL = P ± σ * z Lowe Lowerr Lim Limit it = 0.6 0.600- (0.0 (0.049 49)) (1. (1.64 645) 5) = -0.5194
Uppe Upperr Lim Limit it = 0.6 0.60 0 + (0.0 (0.049 49)) (1. (1.64 645) 5) = 0.6806
45.0% Z Corresponding value = 1.645
Here, the sample mean P 1=0.65 which lie on Acceptance region so we accept the null hypothesis and reject the alternatative hypothesis. So it is proved that 60% of the customer are aware of Mutual fund’s SIP.
69
S.K.School of Business Management,Patan Management,Patan
SWOT Analysis •
Strength :
A large network is one of the most plus point of Motilal Oswal
The leadership of the Motilal Oswal is also very good
The Research Team of Motilal Oswal is very powerful. MF is totally dependent on the research work so it is very beneficial for the MF.
The service provided to customers by Motilal Oswal is also good
The company’s total turnover is very high
The return given to customers on their investment is high
The company has good and experience dealers also
70
S.K.School of Business Management,Patan Management,Patan
The technology used by Motilal Oswal is very advanced.
Weak We akne ness ss :
There is over staffing is company. So many time some of
employee has no work and this effects on their moral for work and wastage of time also.
The time management of company is not proper.
Lack of proper co-ordination between two departments of the
company.
Opportunity :-
The Security market of Mehsana is very potential.
The com compan pany has hu huge ge
dat databas abasee of HNI cus customer omerss, so
company can take benefit for its services special for MF.
In Mehsana city there is only one branch of Motilal Oswal. Due to this reason the investors of the other side of Mehsana can not take the more benefit of it. So company can make its other branch at the other part of Mehsana also.
71
The growth of clients in company is constant.
S.K.School of Business Management,Patan Management,Patan
Thee plac Th placee wher wheree the the comp compan any y is situ situat ated ed is a very very famo famous us corporate place so it is beneficial for the company.
Comp Compan any y arra arrang nges es semi semina nars rs regu regula larl rly y for for the the incr increa easi sing ng awareness about the services and its new products.
•
The mutual fund market is also potential
Threats :-
The company has to face a cut throat competition
Rules and regulation of government of India are also very tuff
The increment in new competitors of company with new technology is also very fast.
•
Findings :-
Market is potential but only few people investors know about the MF services.
The company has no any expert person for the marketing of MF The company’s Tips are highly demanded.
People People want to invest invest in MF MF but they are are afraid afraid about risk and and high amount of MF.
NRI client are 72
mostly prefer long term investment.
S.K.School of Business Management,Patan Management,Patan NRI
clients agree with research based investment gives more
return.
35% people are not investing in mutual fund because they believe in self manage of fund.
Mostly people says that MF gives more return and safe other security. People are more interested in investing in MF’s SIP than other investment.
Suggestions :
The staff of Adviser or dealers should meet their clients and
try to find out their problems and solve it. 73
S.K.School of Business Management,Patan Management,Patan
The company should take employee specialist for MF.
The company should make contact for MF services with all
customers.
The company can create more awareness about MF through
seminars and personal relationship.
Make literatu literature re in Gujarati Gujarati also. also. Most of people people don’t know know
good English Company should do more
Follow the customers on time.
•
advertisement advertisement of MF.
The solution of customers complain should be done on time.
BIBLIOGRAPHY
WEB SITES
74
S.K.School of Business Management,Patan Management,Patan www.motilaloswalsecurities.com www.amfi.com www.njindiainvestment.com www.nseindia.com www.bseindia.com www.google.com www.the-finapolis.com www.mutualfundsindia.com www.valueresearchonline.com www.moneycontrol.com www.morningstar.com www.yahoofinance.com www.theeconomictimes.com www.rediffmoney.com www.investopedia.com
•
QUESTIONNAIRE:
Dear Respondents,
75
S.K.School of Business Management,Patan Management,Patan
I am the student of S.K. SCHOOL OF BUSINESS BUSINESS MANAGEME MANAGEMENT NT PATAN PATAN like to have a survey Awarene ness ss of Mutu Mutual al fund fund’s ’s SIP SIP in based on the topic “ Aware Mehs Mehsan ana a city city’’ ’’ is included in “Su Summ mmer er Inte Intern rnsh ship ip Programme” Training Project which is the part of our study .This information information provided provided by you is only for educational purpose purpose and will be kept secret.
1.
Do you invest in Mutual Fund? Yes [ ]
No [ ]
If yes then go to question no.4, No. continue
2.
Why you are not invest in Mutual Fund?
3.
Which option you select for investment rather than Mutual Fund?
[
]
Bank
[
]
[
]
Govt. Govt. Secu Securit rities ies
[
] Commo Commodi dity ty
[
] Real Real Estate Estate Insu Insura ranc ncee
[ ] Posta Postall Sche Schemes mes Priva rivate te Play Player er (Sav (Savin ing g Sche Scheme mes) s) If other then specify 76
[
]
Stock market
[
]
S.K.School of Business Management,Patan Management,Patan
After this answer go to question no.11 4.
Do you know about Mutual Fund’s SIP? Yes
5.
[
]
No
[
]
Which factors you select for invest in Mutual Fund’sSIP? Higher return
[
]
Low risk
[
]
Easy to invest
[
]
other
[
]
If other then specify
6.
Which information sources you take in mind when you invest? Advertise in News papers
[ ]
TV
[
]
Advisors
[ ]
Brokers
[
]
Friends/Relatives
[
Hoardings
[
]
]
If other then specify
7.
Which problem face when you invest? Lack of Fund knowledge 77
[
]
S.K.School of Business Management,Patan Management,Patan Lack of Advertisement
[
]
Investment Process
[
]
Others
[
]
If other then specify
8. Are
you agree with mutual fund’s SIP is safe for investment than security market?
Agree
[ ]
[ ]
[ ]
[ ]
[ ]
Disagree
Are you agree with mutual fund’s SIP gives more return then other?
9.
Agree
[ ]
[ ]
[ ]
[ ]
[ ]
Disagree
10. Which AMC you select if you want to invest in Mutual fund? SBI 78
DSP MERRILL LYNCH
S.K.School of Business Management,Patan Management,Patan RELIANCE
FIDELITY
LIC
CHOLA MUTUAL FUND
UTI
FRANKLIN TEMPELTON
TATA
HSBC
HDFC
KOTAK MAHINDRA
PRUD.ICICI
ABN AMRO
SUNDARAM
STANADARD CHARTERED
If other then please specify its name
11.
How many time periods you would like to invest in MF’s SIP?
1 - 2 years 3 - 4 years
[ ]
2 - 3 years
[ ]
[ ]
4 - 5 years
[ ]
More More then then 5 year yearss [ ]
13.
Wha What is is yo your mo monthl thly In Income? me? 5000 – 10000 79
[ ]
10000 – 15000
[ ]
S.K.School of Business Management,Patan Management,Patan
14.
15000 – 20000
[ ]
20000 – 25000
[ ]
25000 – 30000
[ ]
30000 – 35000
[ ]
35000 – 40000
[ ]
40000 – 45000
[ ]
45000 – 50000
[ ]
More then 50000 [ ]
PERSONAL INFORMATION:-
Name :- __________________________________________________ Address :- _________________________________________________ Phone/Mobile:- _____________________________________________
Occupation:Busine Business ssma man n[
] Stude Student nt
Job/ Job/ Serv Servic icee [
] Deal Dealin ing g in Shar Shares es on only ly
[ [
]
]
Other then please specify ______________________
“Thanks for Giving Your Precious Time”
80
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