mba project nfo

8/19/2019 Mba Project Nfo

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NFO PROCESS IN MUTUAL FUNDS

AT

INDIA INFOLINE

Project report submitted inPartial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION

Submitted by:Divya Naib

Roll No.

BCPS

!"ffiliated to P #niversity$

Dwar%a& delhi

!'()*+'(),$

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DECLARATION

I hereby declare that the project titled -N/ PR/C0SS N 1#2#"3

#NDS4 done at ndia nfo line submitted by me as part of partial fulfillment

for the award of the Masters of Business Administration, at BCIPS IP University,

yderabad is a record of Bonafide wor! done by me"

I also declare that this report has to my !nowled#e is my own and is neither

submitted to any other university nor published any time before"

!DIVYA NAIB$

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ACKNOWLEDGEMENT

$he presentation of this project has #iven me an opportunity to

e%press myprofound #ratitude to all concern in #uidin# me" &oremost I

would li!e to than! GOPAL SIR 'Mana#er of Indiainfoline( for #ivin# me

an opportunity to underta!e this projectwor!"

I would li!e to than! the ND"N/3N0 staff for #ivin# me

support and the re)uired material on time"

I would also than! the principal of our colle#e,

BCIPS IP U*I+-SI$.

yderadad" &or providin# an opportunity to under#o a project study

pro#ram" I would li!e to than! 5"1N 1"1 for assistin#

and #uidin# me to complete the project wor!"

!DIVYA NAIB$

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FOREWORD

Investments #oals vary from person to person" /hile

somebody wants security, others mi#ht #ive more wei#hta#e to returnsalone" Somebody else mi#ht want to plan for his child0s education while

somebody mi#ht be savin# for the proverbial rainy day or even life after

retirement" /ith objectives defyin# any ran#e , it is obvious that the

products re)uired will vary as well"

Indian Mutual &unds industry offers a plethora of schemes and

serves broadly all tupe of investors" $he ran#e of products includes e)uity

funds, debt, li)uid, #ilt and balanced funds" $here are also funds meante%clusively for youn# and old, small and lar#e investors" Moreover, the setup

of a le#al structure, which has enou#h teeth to safe#uard investors intersts,

ensures that the investors are not cheated out of their hard earned money"

All in all, benefits provided by them cut across the boundaries of investor

cate#ory and thus create for them, a universal appeal"

Investors of all cate#ories could choose to invest on their own in

multiple options but opt for Mutual &unds for the sole reason that all benefitscome in a pac!a#e"$he Mutual &und industry is havin# its hands full to cater

to various needs of the investors by comin# up with new plans, schemes and

options with respect to rate of returns, dividend fre)uency and li)uidity"

In view of the #rowin# competition in the Mutual &unds industry,

it was felt necessary to study the investors orientation towards Mutual &unds

i"e" their pattern of ris! apetite and preferences in various schemes, plans

and options in order to provide a better service, $he study is an attempt in that direction"

ABSTRACT

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$he purpose of this project creates a desi#n in relation to

process of *&1 '*/ &U*2 1&&-( and how this process is carried out till

the end"

$he school wor! of this project is based on the procedure

ta!es place in indiainfoline while #oin# throu#h the *&1"

$o schoolwor! the technical procedure, le#al dimensions of

*&1 at India info line and e%amine briefly the or#ani3ational structure,

communication networ!, resource, re)uirements to launch a new fund"

$he analysis is made by carryin# the applications of reliance

e)uity fund

$he data for his study is colleted from various sources li!e

ma#a3ines, Boo!s, /ebsites, and from the staff of Indian Info 4ine"

It #enerates an Idea to the investors in !nowin# the

technical procedure in carryin# a *&1 by the 1r#ani3ation"

*ew &und 1ffer process may not be same for all Mutual

funds that are released" It may differ from one fund to other dependin# up

on the si3e li!e *1 "of Applications received, Subscriptions amount received

etc" "

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CONTENTS

TITLE PAGE NO

INTRODUCTION 1

REVIEW OF LITERATURE 7

COMPANY PROFILE 23

ANALYTICAL FRAME WORK 29

QUESTIONNAIRE 52

FINDINGS AND CONCLUSIONS 57

SUGGESTIONS & RECOMMENDATIONS 58

BIBLIOGRAPY !"

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INTRODUCTION

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Introduction to the study:

Mutual &und Industry which is a relatively of a post5economic

reforms phenomena in India, has been e%pandin# durin# this

Period in branch and bound Many commercial ban!s, insurance companies

entered into mutual fund industry apart from forei#n players" In the early

years of evolution of mutual fund industry in the Indian financial mar!et it

was a monopoly and continued to be the same till very recent time" $hen

many players both forei#n and Indian entered in the Mutual &und Industry"

$his increased the competition between the various firms

wor!in# in the mutual fund Industry $he need for developin# various new

schemes arises so as to attract investors towards the firm and e)ually

encoura#in# them to invest" $his #rowth in the Mutual &und Industry and

scope of increasin# mar!ets has further increased the competition between

the firms in the industry"

$he competitions had #iven raise to demand for speciali3ed

products and s!ills of various individuals who can contribute towards the

containment and #rowth of individual firms in the mutual firm industry" $his

#ave rise to various related or#ani3ations and individuals wor!in# as

speciali3ed teams in the various areas of mutual funds" 1ne such

or#ani3ation is ND" N/ 3N0 P62 32D it comes into pictures where

the investors apply for the units in a Mutual &und schemes and verify the

validity and eli#ibility of the investor and allots the units

$he mutual fund companies now receive millions of

applications if a new scheme is launched"

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$his is due to the wide spread awareness created amon# the urban and

rural Population of India" It therefore becomes a erculean tas! to

Mana#e the floodin# applications owever it should be noted that this is a

1ne time activity similar to that of a short run project It is needless to

State that a #iven mutual fund firm will not be possessin#

$he technolo#ical, human and !nowled#e resources to ta!e up such a

#i#antic tas!, it is in fact not needed by a mutual fund firm to create such a

vast or#ani3ational structure when it is seen from the point of view scale of

economies" &urther to this problem, the mutual fund industry does not !now

where it stands in the current volatile and turbulent environment" $his may

be $he reason they prefer to hire the services of professionals firm with

speciali3ed !nowled#e and %pertise"

$hese developments have led to an outcome that today, launchin# of mutual

fund scheme has become a well or#ani3ed activity which is accomplished

throu#h the coordinated endeavors of tas! #roups"

$he asset mana#ement companies have desi#ned various schemes in

accordance with the re)uirements of the various sections on investors on

basis of e)uity lin!ed, debt instruments lin!ed, commodities lin!ed and

specific industry lin!ed instruments" $he investor today is #iven a wide

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ran#e of options to invest in various types of funds accordin# to his interests

and capabilities"

Mutual funds enable even a small investor to investor to invest, as most of

the mutual funds just start from a minimum amount of investment of -S"

6777 hence even a small investor can invest into a mutual fund and reap

returns in the same proportions as the other bi# time investors" $his shows

that mutual fund industry is one which aims at every section of the society"

$o deal with this lar#e population of investors and the competition, the asset

mana#ement company has been forced to develop and desi#n new schemes

and hire the services of professionals"

mutual fund industry involves various operations from the sta#e of

identification of the tar#et #roup or definin# a mar!et se#ment, desi#nin# a

scheme which comes up to the e%pectations and aspirations of the tar#et

#roup or mar!et se#ment, reachin# the selected mar!et throu#h launchin#

the scheme which is thereby called *&1, till the sta#e of investin# the

amount raised in accordance with the norms stipulated with offer document

and distributin# the returns to the investor by way of dividend, after ma!in#

ade)uate provision for ta%ation and other operatin# costs" All this process is

well or#ani3ed and performed in a specific order" $here are various related

or#ani3ations which speciali3e in the activities at various sta#es of the

functionin# of the mutual funds"

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It is therefore felt e%pedient to e%amine the various intricacies involved in

the new fund offer '*&1(" Specifically the various documents that are bein#

processed, the parameters evolve either customarily or by le#al mandate to

scrutini3e the applications" +arious sta#es involved in the scrutiny, the

rejection criteria, the creation of human or#ani3ation to monitor the

activities, the communication channel and the structure of the or#ani3ed

activities and the le#al environment of *&1 to some e%tent" Such a

dissertation would help to come out with a comprehensive report which may

serve as a #uide for the prospective entrants into mutual fund investment

and to the e%istin# mutual fund investors to some e%tent"

Obecti!es o" the study:

8 $o study the technical, procedural, le#al dimensions of the *&1

8 $o e%amine briefly the or#ani3ational structure, communication

networ!, resource re)uirements to launch a new fund

8 $o study a sample of application drawn from -eliance Mutual

&und"

Methodo#o$y o" study:

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$o fulfill the objective of the study both primary and secondary data has

been collected" Primary data is the data collected specifically for the study"

2ata is collected directly from people and or#ani3ations via )uestionnaires or

surveys before bein# analy3ed to reach conclusions concernin# the issues

covered in the )uestionnaire or survey"

In this study primary data was collected throu#h interaction with staff of

ndia info line Pvt 3td. and the applications of -eliance e)uity fund"

Secondary data is the data collected previously by someone else for some

other purpose which can be analy3ed and interpreted accordin# to

re)uirements" &or e%ample, sources of secondary data are #overnment

publications, newspapers, worldwide web etc"

In this study the Secondary data is mainly ta!en from

8 $he company9s trainin# material"

8 -econciliation statements"

8 1ther documents #enerated with in the or#ani3ation

/hich have to Access:

7 www" indiainfoline"com, www"amfiindia"com,www"sebi"com"

Li%it&tions o" study:

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8 Analysis of the applications is carried out by ta!in# the

applications from -eliance e)uity &und" $he data available is

therefore restricted by the desi#n of the application"

8 $he inspection of applications is done on the basis of a sample

of ;


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REVIEW OF LITERATURE

Ne' "und o""er (NFO):

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/hen a mutual fund asset mana#ement company announces Public issue of

units of a new fund=scheme it is called a *ew &und 1ffer 'N/("

/hen a mutual fund company plans for a new fund offer it first informs to

the re#istrar or the bac! office functions provider li!e I*2IA I*&1 4I*

throu#h email" $his is called as >*&1 4aunchin# Information Mail? send by

the fund mana#er of the asset mana#ement company to the *&1

coordinator of the I*2IA I*&14I*" In this Mail the fund mana#er will as!

the *&1 coordinator to #et ready for the new fund with the re)uired man

power and software"

4ater they send the sample application form, the !ey information

memorandum '51( and offer document to ND" N/ 3N0" $his offer

document sets forth concisely, necessary information about the scheme for a

prospective investor to ma!e an informed investment decision on the

scheme described" $he offer document contains the salient features of the

scheme li!e *&1 openin# date, *&1 closin# date, Scheme name, Scheme

class, reopenin# date, plans available ban!s involved, number of ban!

branches involved, minimum amount @ fresh purchase, ma%imum amount @

fresh purchase, e%pected number of applications, entry load and e%it load"

$he unit mana#er or the *&1 coordinator will arran#e a meetin# where the

AMC team, *&1 e%pert9s team, 2ata entry team, -econciliation team and the

dispatch team will discuss and fi% the tar#et dates by which the wor! has to

be completed accordin#ly"

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Wh&t is & %utu "und8

Mutual fund is a mechanism for poolin# the resources by issuin# to the

investors and investin# funds in securities in accordance with objectives as

disclosed in offer document"

Investments in securities are spread across a wide cross5section of industries

and sectors and thus the ris! is reduced, 2iversification reduces the ris!

because all stoc!s may not move in the same direction in the same

proportion at the same time" Mutual fund issues units to the investors in

accordance with )uantum of money invested by them" Investors of mutual

funds are !nown as unit holders"

$he profits or losses are shared by the investors in proportion to their

investment" $he mutual funds normally come out with a number of schemes

with different investment objectives which are launched from time to time" A

mutual fund is re)uired to be re#istered with Securities and %chan#e Board

of India 'S0B( which re#ulates securities mar!ets before it can collect funds

from the public"

Mutual fund is a collection of stoc!s and = bonds" A mutual fund as a

company brin#s to#ether a #roup of people and invests their money in

stoc!s, bonds and other securities" ach investor owns shares, which

represent a portion of the holdin#s of the fund"

/ith increased uncertainties or fluctuations in the primary mar!et and

decreasin# ban! interest rates, mutual funds are #ainin# popularity day by

day *ow5a5 day9s mutual funds are performin# well will hi#h returns to the

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investors" $here are various types of schemes and plans available to all type

of investors"

4et us assume that you inertia million rupees over ni#ht and want

to invest the same to #et better returns you can consider the followin#

investment avenues that are popular in Indian conte%t

Company shares

&i%ed deposits in ban!s

overnment bonds

&i%ed deposits in *B&C

Chit fund

-eal estate

1ther local money lendin# options

*ros &nd con+s o" the in!est%ents:

S*1" Investmentavenue

-is! -eturn ffort re)uiredto

trac!=maintaininvestment

;" Company shares

and stoc!s

i#h i#h i#h


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If the fund sells the securities that have increased in price, the fund has a

capital #ain Most of the funds also pass on these #ains to investors in a

distribution"

If fund holdin#s increase in price but are not sold by the fund mana#er, the

funds shares increase in price" .ou can then sell your mutual fund units for

profit" &unds will also usually #ive you a choice either to receive a chec! for

distributions or to reinvest the earnin#s and #et more shares"

Income it earned from dividends on stoc!s and interest on bonds" A fund

pays out nearly all income it receives over the year to fund owners in the

form of a distribution"

Ty.es o" Funds:

Mutual funds also come in various si3es and shapes" $here are about do3en

fund classes but all of them are derivatives of three basic classes are as

follows"

rowth

Income

4i)uidity

Gro'th: 4on# term #rowth, since these funds invest in e)uities, they are

also called as e)uity funds" $heir ris! level is hi#h so is the return"

Inco%e: $his type of fund provides re#ular income by investin# in debt

instruments li!e bonds, debentures etc", Because of their nature of

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investment, they are also called debt schemes" $heir ris! and return levels

are medium"

Li/uidity: $hese are primarily invested in money mar!et instruments and

thus most volatile, safer and #ive lower returns" $hese funds are also !nown

as cash or money mar!et funds"

In addition to the above type there are other derivative classes as listed

below"

2his type of fund... nvest in this area

Balanced fund Is an investment blend of e)uity and dept

Instruments

nde9 fund Invests in the companies that participate in

stoc! mar!et indices in the same wei#ht a#e

comprisin# of an inde%

Sector fund Invests in companies pertainin# to specific

sectors li!e health care, ban!in#, &MC,

technolo#y etc"

0lls 2a9 funds Invests is overnment bonds and #enerally

lon# term in nature" $hey provide ta%

benefits"

$hese are called mutual fund schemes" It is based on the investment

objective" $here is another Classification based on the capitali3ation of

funds" If the fund offers purchase or sellin# on a Continuous basis it is called

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$hey are the owners of the mutual funds and forms trustees who in turn

appoint AMC and mana#e the mutual fund"

SBI re#ulations re)uire that at least two at least two thirds of the directors

of trustee company or board of trustees must be independent i"e" they

should not be associated with the sponsors" Also, 67G of the directors of

AMC must be independent" All mutual funds are re)uired to be re#istered

with SBI before they launch any scheme"

2his entity; Does this;Sponsor orms 1f as a trust. Re


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n a ban%& you will; n a mutual fund;

/pen an account with initialdeposit

>ou subscribe in a scheme andbuy units

Deposit money Do additional purchases

?ith draw money >ou redeem units

/pt for a recurrin< deposit Start a systematic investmentplan

Since mutual fund offers many more options to investors, it will have many

more transaction types as well" 4et us see some popular transactions inmutual funds

SN/. 2ransaction Description

). New purchase New investment.

Buyin< units in ascheme

'. "dditional purchase Buyin< additionalunits in a scheme

@. Redemption Sellin< units and


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ach scheme = plan will have a different mar!et value is called the *et asset

value or simply *A+" Since mar!et value of the underlyin# securities chan#es

every day, *A+ of a scheme also varies on a day to day basis"

SEBI Guide#ines on Ne' Fund O""er :

). Procedure for launchin< of schemes:

!)$ *o scheme shall be launched by the asset mana#ement company unless

such scheme is approved by the trustees and a copy of the offer document

has been filed with the Board"!'$ very mutual fund shall alon# with the offer document of each scheme

pay filin# fees as specified in the Second Schedule"

'. Disclosures in the offer document:

!)$ $he offer document shall contain disclosures which are ade)uate in order

to enable the investors to ma!e informed investment decision Hincludin# the

disclosure on ma%imum investments proposed to be made by the scheme in

the listed securities of the #roup companies of the sponsor"

!'$ $he Board may in the interest of investors re)uire the asset mana#ement

company to carry out such modifications in the offer document as it deems

fit"

!@$ In case no modifications are su##ested by the Board in the offer

document within


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!*$ *o one shall issue any form of application for units of a mutual fund

unless the form is accompanied by the memorandum containin# such

information as may be specified by the Board"

@. "dvertisement material:

!)$ Advertisements in respect of every scheme shall be in conformity with

the Advertisement Code as specified in the Si%th Schedule and shall be

submitted to the Board within E days from the date of issue"

!'$ $he advertisement for each scheme shall disclose Hinvestment objective

for each scheme

*. 1isleadin< statements:

$he offer document and advertisement materials shall not be misleadin# or

contain any statement or opinion, which are incorrect or false"

A. 3istin< of close ended schemes:

very close ended scheme shall be listed in a reco#ni3ed stoc! e%chan#e

within si% months from the closure of the subscription Provided that listin# of

close ended scheme shall not be mandatory"

!a$ If the said scheme provides for periodic repurchase facility to all the unit

holders with restriction, if any, on the e%tent of such repurchaseJ or

!b$ if the said scheme provides for monthly income or caters to special

classes of persons li!e senior citi3ens, women, children, widows or physically

handicapped or any special class of persons providin# for repurchase of units

at re#ular intervalsJ or

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!c$ If the details of such repurchase facility are clearly disclosed in the offer

documentJ or

!d$ If the said scheme opens for repurchase within a period of si% months

from the closure of subscription"

,. Repurchase of close ended scheme:

!)$ $he asset mana#ement company may at its option repurchase or reissue

the repurchased units of a close ended scheme"

!'$ $he units of close ended schemes referred to in the proviso to re#ulation

may be open for sale or redemption at fi%ed pre5determined intervals if the

ma%imum and minimum amount of sale or redemption of the units and the

periodicity of such sale or redemption has been disclosed in the offer

document"

!@$ $he units of close ended scheme may be converted into open ended

scheme"

!a$ If the offer document of such scheme discloses the option and the period

of such conversionJ or

!b$ $he unit holders are provided with an option to redeem their units in full"

!*$ A close ended scheme shall be fully redeemed at the end of the maturity

period HProvided that a close ended scheme may be allowed to be rolled over

if the purpose, period and other terms of the roll over and all other material

details of the scheme includin# the li!ely composition of assets immediately

before the roll over, the net assets and net asset value of the scheme, are

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disclosed to the unit holders and a copy of the same has been filed with the

Board"

Provided further, that such roll over will be permitted only in case of those

unit holders who e%press their consent in writin# and the unit holders who

do not opt for the roll over or have not #iven written consent shall be

allowed to redeem their holdin#s in full at net asset value based price"

. /fferin< Period:

*o scheme of a mutual fund other than the Hinitial offerin# period of any

e)uity lin!ed savin#s schemes shall be open for subscription for more than6 days

. "llotment of #nits and refund of money:

!)$ $he Asset mana#ement company shall specify in the offer document

!a$ $he minimum subscription amount it see!s to raise under the scheme

and

!b$ In case of over subscription the e%tent of subscription it may retain

Provided that where the asset mana#ement company retains the over

subscription referred to in clause 'b(, all the applicants applyin# up to five

thousand units shall be #iven full allotment subject to the oversubscription

mentioned in clause 'b("

!'$ $he mutual fund and asset Mana#ement Company shall be liable to

refund the application money to the applicants5

!i$ If the mutual fund fails to receive the minimum subscription amount

referred to in clause 'a( of sub5re#ulation ';(J

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!ii$ If the moneys received from the applicants for units are in e%cess of

subscription as referred to in clause 'b( of sub5re#ulation ';("

!@$ Any amount refundable under sub5re#ulation '


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should mention his=her permanent account number 'PA*( allotted under the

Income $a% Act, ;LD; or where the same has not been allotted, the I-

number and the income5ta% Circle=/ard=2istrict should be mentioned" In

case where neither the PA* nor the I- number has been allotted, the fact

of non5allotment should be mentioned in the application form" Any

application form without these details should not be accepted by the mutual

fund" $he above clarification is bein# issued in accordance with -e#ulation

EE of the SBI 'Mutual &unds( -e#ulations, ;LLD"

)'. nstructions for filin< scheme offer document with S0B:

As advised in SBI circular M&2=CI-=7D=


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COMPANY PROFILE

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COM*AN6 *ROFILE:

Circa;LL6" A #roup of professional formed a company called Probity

-esearch N Services Pvt 4td" $he name was later chan#ed to India Info line

4td" $he 1bjective was to provide unbiased and independent information to

mar!et intermediaries and investors" $he )uality of research soon cau#ht the

ima#ination of all major participants in the financial mar!et" In a span of < to

years the client list read li!e the who9s who of Indian &inancial mar!et" $he

list included consultin# firms li!e Mc Oinsey, companies li!e industan 4ever,

Ban!s li!e Citiban!, -atin# a#encies li!e C-ISI4, 2NB, &IS, forei#n bro!ers

as well as leadin# Indian bro!ers"

1ne fine mornin# in early ;LLL, a collea#ue had a cra3y idea that if

the company made all the research available free on the web, the number of

users may well jump from


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the company put up all the information free on the website and let #o of all

the revenues and profits" /orse, if the new avatar failed, there would be Fno

comebac!s9"

$he company became heavily dependent on its e5bro!in# business for

survival" $he odds were a#ainst them" $here was no money available from

the private e)uity investors at any valuation" $he core promoters of the

company had little e%perience of bro!in#" $o add to it, the mar!et was hit by

a scam" $hey also had their share of price to pay and lessons to learn" It was

difficult to retain people" Althou#h devastatin# for morale, but not surprisin#,

most mar!et observers had written them off"

$here was a core #roup who never lost hope" $hey cut all possible costs and

wor!ed on a bare bones structure" $hey survived a#ainst all odds and

started capturin# mar!et share" $he company rose from stren#th to stren#th

to become the leadin# corporate a#ent in life insurance and amon# the top

retail players in mutual fund and bro!in# space"

Our Key Mi#estones:

• Incorporated on 1ctober ;, ;LL6 as Probity Research E Services.

• 4aunched Internet portal www.indianinfoline.com in May ;LLL"

• Commenced distribution of personal financial products li!e Mutual

&unds and -BI Bonds in April


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• 4aunched stoc! messa#in# service in May


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1r. R.6en%ataraman !09ecutive Director$

• -" +en!ataraman is the co5promoter and %ecutive 2irector of

IndiaInfoline 4td"

• e holds a B tech de#ree in lectronics and lectrical

Communications n#ineerin# from II$ Ohara#pur and an MBA

de#ree from IIM Ban#alore"

• e has held the position of Assistant +ice President with Capital

Services India 4imited in their private e)uity division"

The Bo&rd o" Directors:

1r. Sat Pal 5hattar !Non 09ecutive Director$

• Mr" Sat Pal Ohattar joined the Board with effect from April


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• Mr" *ilesh Shivji +i!amsey joined the Board with effect from &ebruary

;;,


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• By technolo#y, we mean that as an or#ani3ation, we levera#e

technolo#y to deliver best service to our clients at the least cost"

• 1ur tradin# interface for bro!in# is absolutely world class"

•

/e e%pect our employees to be comfortable with and confident ofusin# technolo#y"

Ser!ice7

• 1ur customer service is warm, friendly and responsive that media

cannot help but rave about" $oday, service is the !ey driver for #rowth

in financial services" /e ta!e pride in our ability to add value that our

customers can feel and appreciate"

• -emember we have to always ensure that simple thin#s li!e ensurin#

customer problems are solved, re)uests are catered to, #ivin# him

investment ideas etc" Basically, whatever it ta!es to !eep him served"

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ANALYICAL FRAME

WORK

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NFO .rocess:

/hen a mutual fund Assets Mana#ement Company '"1C( announces a

public issue of units of N new fund=scheme, it is called a new fund offer

'N/("

$he new fund is planned and sources from where it should be collected and

where the amount should be invested is planned by the AMC"

Accordin# to the SBI rules any new fund launched should be approved by

SBI" 1nce the AMC #et the approval of SBI for the fund it does the

mar!etin# of the fund by it self or throu#h bro!ers" $he investors who are

willin# to invest in a particular fund deposit the amount they plan to invest in

the ban! as directed by the AMC"

$hese ban!s collect the application and amount and direct it towards the

re#istrar specified by the AMC" &rom this point India info line came into the

picture as the re#istrar"

$he role, responsibilities, activities, forms and reports involved in this

process of *&1 is #eneral, are AMC, fund mana#er, SIP I=c, Switches I=c",

*&1 Coordinator" Internal auditor, Systems'S=/( dept" IP1 Centre

coordinator, IP15-$I, IP152P, Scannin# and Printin# N 2ispatchin#"

$eams involved in the *&1 process+

Mutual fund unit

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Descri.tion o" NFO .rocess:

Ban% wise se


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that is available on the application li!e name of the applicant, a#e, Address,

PA*, Ban! details, bro!er code, sub bro!er code, email addresses, #uardian

name, amount invested, name of the scheme or plan invested in, etc", are

entered into the systems of India info line"

Second 0ntry:

After first entry the data is a#ain sent for the second entry" ere in second

entry, the data that is entered in first entry is chec!ed and the information

what ever is missin# is entered"

/nline 1atchin


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&irst time chec! clearin# list is in short is called as first time CC4" &irst $ime

CC4 is prepared based on the data that is provided after first time

verification"

09ternal "udit:

&irst time chec!5clearin# list is sent to an e%ternal audit team" India info line

appoints this team before the *&1 processes" $hey are nowhere related to

the or#ani3ation" $his e%ternal audit team will mainly chec! name of the

investor, amount invested, ban! details PA* number, name of the

scheme=plan and mode of holdin# 'M1(" But in total they will chec! more

than 7 characters

Second time verification:

If the e%ternal auditin# is not satisfied and if they find any mista!es or

missin# information they will send the first time CC4 for second time

verification" ere they verify the chec! list once a#ain and mista!es li!e

invalid mode of foldin# 'M1(, invalid email address, status minor without

#uardian name, invalid date of birth for minor, invalid e%istin# account

number, blan!=null application number, *-I with blan! account type, savin#

or current, investor si#nature missin# are rectified"

Second time CC3:

Second chec! the verification team prepares clearin# after verifyin# the

mista!es that are pointed out by the e%ternal audit team" After preparin#

second time CC4 it is a#ain sent to e%ternal audit team"

nte


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Chec! clearin# list will be #iven by the e%ternal audit team to the *&1 team

in India info line $his *&1 team in India info line will once a#ain chec!

further mista!es li!e spellin# mista!es in the name of the applicant etc", and

rectify them"

nte


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ntire data after #ettin# filtered at each and every step will be handin# over

to mutual fund services team" $his M&S team will once a#ain verify the data

and the final data will come out any mista!es and default values"

Portin< in 2as% 1:

$as! M& is the software developed by India info line $echnolo#y team" It is

prepared accordin# to the su##estion #iven by AMC" $his $as! M& will

resemble the style or Performa or outloo! of the statement of accounts" &inal

data that they #ot after filterin# the mista!es and default values is ported in

the tas! M&"

"llotment of units:

Allotment of units is done as per the amount that is invested by investors"

$hey will avail the units ta!in# the *et Asset +alue '*A+( of that particular

scheme as base"

Sample S/" verification by audit:

Statement of accounts 'S1A( is pic!ed up randomly from a hu#e lot and the

audit team does verification" $his verification will result in preparin# a

statement of accounts which in cent percent correct and e%act"

$his S1A contains data li!eQ

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8 *ame of the investor

8 Address

8 Ban! details8 Pan *umber

8 uardian name

8 Bro!er code

8 Sub bro!er code

8 *ominee name

8 *ominee addresses

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India info line will finally prepare *ew &und -eport" $his new fund report has

to be submitted to the AMC" $hen AMC will submit a copy of the same to the

SBI, which is mandatory" $he new fund report details li!e

)$ Scheme details

8 Scheme name

8 Scheme type

8 2ate of openin#

8 2ate of closin# the scheme = initial subscription period

8 $ar#et amount

8 Minimum amount to be raised

'$ Subscription = Allotment details

8 *umber of applications received with in the country

8 *umber of *-I applications received

8 Subscription amount received with in the country

8 Subscription amount received form *-I

8 2ate of allotment of units

@$ Initial issue e%penses

*$ 2ate of dispatch of refund of refund orders

A$ Unit holdin# pattern

,$ 2istribution schedule

$ eo#raphical 2ispersion list

,o#din$ .ro"i#e o" &..#ic&nt7

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*&rticu#&rs Sin$#e 8oint Anyone Tot

N#$ #% ''()*+,- 89 " 31 12"

. #% ''()*+,- 7/ " 2! 1""

nterpretation0

It can be seen that majority of the applicants prefer to hold the allotted units

individually and


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,)*( B-)+-- S4)* S,+, P#%--)#+( R,) #-6)% O,- T#,(

#$ #%

''()*+,-

3/ /! 2 / 7 23 5 12"

. #%''()*+,- 28 38 2 3 ! 19 / 1""

nterpretation0

Majority of the applicants are from services personnel at G, ne%t comes

business People are


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P,)*(- R-)+, NRI T#,(

N#$ #% ''()*+,- 1"/ / 1"8

. #% ''()*+,- 9! / 1""

nterpretation0

It can be observed from the table and the chart that the majority of

applicants are resident individuals constitutin# LDG the applicants and

remainin# G are the *on5resident Indians"

Status of non+individuals0

P,)*(- P,+-)' AOP:BOI T-, UF F(( B+;-

N#$ #% ''()*+,- 1 " " 1" " "

. #% ''()*+,- 1" " " 8" " "

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P,)*(- C#


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. #%

''()*+,-

" 25 !" 15 1""

nterpretation0

$he a#e profile of the applicants shows that the majority of the applicants

fall into the a#e roup ;5D7 years and the percenta#e of them bein# D7"

$his is followed by the a#e roup ;57 years and ;6G of the applicants

are above D7 years"

nvestment profile of the applicants0

P,)*(- 5""">

25"""

25""1>

5""""

5"""1>

1"""""

A#4

1"""""

T#,(

N#$ #% ''()*+,- 78 32 / ! 12"

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. #% ''()*+,- !5 27 3 5 1""

nterpretation0

Amount of investment is hi#h at D6G in the ran#e 67775


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nterpretation0

Majority of the applicants 1pted the #rowth option and the option of

dividend reinvestment is ;G" $his means that 7G of the applicants are

not investin# for income sa!e rather they loo! at the accumulation

of profits"

"nalysis of mode of payment0

P,)*(- C? DD T#,(

N#$ #% ''()*+,- 119 1 12"

. #% ''()*+,- 99 1 1""

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nterpretation0

$he mode of payment reflects upon the )uality of applicants" 1n an avera#e

LLG have paid throu#h che)ues and therefore the *&1 is able to attract

#ood )uality retail investors"

"nalysis of type of account0

P,)*(- SB C+, NRO NRE FCNR T#,(

N#$ #%

''()*+,-

119 1 " " " 12"

. #% 99 1 " " " 1""

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''()*+,-

nterpretation0

Majority of the payments have been made from Savin#s Ban! account 'SB(.

*o payments have been found from *-1, *-, and &C*- even thou#h G

of the applicants are *-I s

Hender profile of the applicants0

P,)*(- M( F


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nterpretation0

$he female participation in the *&1 is low at


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P,)*(- M=

P-

M-, R-,+ P+ U,,

P-

T


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QUESTIONNAIR

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:9ESTIONNAIR

1$ ARE YOU INTERESTED IN MUTUAL FUNDS

AYES

BNO

!&rom the samplin# of ;77 people E7 percenta#e of people are really

Interested in mutual funds.$

2$ WAT IS YOUR AGE GROUP

A25>35

B35>/5

C/5>55

D55>!5

!&rom the above chart we can understand the a#e #roup 665D6 people

are more investin# in to the mutual funds$"

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3$ WAT IS YOUR OCCUPATION

APRIVATE EMPLOYEE

BGOVERNMENT EMPLOYEE

CBUSINESS PERSON

DRETIRED

!ere *umber of -etired employees are investin# more as they are

concerns about their future$"

/$ IN WIC TYPE OF MUTUAL FUND DO YOU LIKE TO INVEST

ACLOSE ENDED

B OPEN ENDED

!ere open ended schemes are more fle%ible compare to close so

Many people are interested into open ended schemes$"

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5$ WAT PERCENT OF RETURN DO YOU EPECT

A 1">15

B 2">25

C 3">/"

D DOUBLING YOUR AMOUNT

!ere *umber of people li!es to double their amount"$

!$ WIC TYPE OF FUND ALLOCATION DO YOU LIKE

A 1"" PERCENT EQUITY

B 8" PERCENT EQUITY & 2" PERCENT DEBT

C 7" PERCENT EQUITY 2" PERCENT DEBT & 1" PERCENT MONEY

MARKET

D 1"" PERCENT DEBT

!ere many investors are love to invest in ;77 percent e)uity fund

Allocation scheme.

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7$ IN WIC OF TE UTI SCEME YOU AVE INVESTED

AUTI WEALT BUILDER FUND

BUTI INFRASTRUCTURE ADVANTAGE FUND

CUTI LONG TERM ADVANTAGE FUND

DNONE

!ere the investors are li!ely to invest in infrastructure advanta#e

fund as this sector is in a boomin# sta#e.

8$ ARE YOU SATISFIED WIT TE RETURNS OF WIC UTI IS GIVING

AYES

BNO

CCANNOT SAY

!$he above chart is clearly sayin# that today accordin# to mar!et

situation many people are )uite satisfied with the return they are

ettin#.

9$ AD YOU INVESTED IN ANY OTER MUTUAL FUNDS

ARELIANCE MUTUAL FUNDS

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B M FINANCIAL

CFEDILITY MUTUAL FUNDS

DSBC

!As people are speciali3ed in mar!et more the investors they all are

Investin# in SBC if not in U$I because SBC is the world9s local ban!

And international old more than


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FINDINGSAND

CONCLUSIONS

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indin


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SUGGESTIONSAND

RECOMMENDAIONS

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BIBILOGRAPHY

Biblio#raphy

8 www"Indiainfoline"com

8 www"sebi"com

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8 www"amfiindia"com

8 *&1 propeller of India info line"

8 *&1 records of -eliance Mutual &und"

8 Mutual &unds in India by SA2AO"

mba project nfo

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