A PROJECT REPORT ON “Perception and satisfaction level among investors investing in liquid funds or others: A Comparative study” AT BIRLA SUN LIFE MUTUAL FUND (CITY CENTRE, GWALIOR)
Submitted to
Jiwaji University Gwalior For the partial fulfillment of the award of Master of Business Administration Administration (2011-2013) Submitted by
Uday Chauhan
PRESTIGE INSTITUTE OF MANAGEMENT GWALIOR (M.P.)
DECLARATION This is declare that the project Report entitled ” Percep Perception tion and satisfac satisfaction tion level level among among investors Investing in liquid funds or others ” has been accomplished by Uday Chauhan and
being submitted partial fulfillment of requirement for the award of the degree of “Master of Business Administration” from Prestige Institute of Management, Gwalior affiliates to Jiwaji University, University, Gwalior. Gwalior. This work has not been submitted by us anywhere else for the award of
any any degre degreee or dipl diplom oma. a. All All sour source cess of info inform rmat atio ion n and and help help have have been been ment mentio ioned ned and and acknowledged.
Date: - 25/07/2012 Place:-Gwalior
Uday Chauhan M.B.A. Roll-No-58(E)
CERTIFICATE This is to certify that Uday Chauhan students of MBA 2 ND semester, Prestige Institute of successfu sfully lly comple completed ted her projec projectt report report Entitl Entitled ed “Percep Management have succes “Perception tion and partial al satisfac satisfaction tion level level among among investor investorss inves investin ting g in liqui liquid d fund fundss or other otherss “For the parti fulfillment of requirement for the award of the degree of “Master of Business Administration. She had made her report under my guidance and supervision with utmost sincerity & loyalty.
Ravidera Pathak (Faculty Guide)
ACKNOWLEDGEMENT We are extremely grateful and remain indebted to our guide Mr. Puneet Sharma (Branch Manager of Birla Sun Life Mutual Fund) and Mr. Mohd. Nayyar for giving me opportunity
to work under his guidance on project report on “Perception and satisfaction level among investors Investing Investing in liquid funds or others ”. I am grateful to him for giving me the valuable
time & suggestion in the execution of project p roject work. I also acknowledge & convey thanks to the BIRLA SUN LIFE MUTUAL FUND for their kind and valuable support.
Uday Chauhan M.B.A. 2ND SEM
TABLE OF CONTENT: S.NO. TOPIC
1
2
3
4
PAGE NO.
Company’s profile:
(i) (i)
Hist Histor ory y of of the the orga organi niza zati tion on & obj objec ecti tive vess
(ii)
Company’s vision
(iii iii)
Com ompa pany ny’’s missi ission on
(iv)
Values
(v)
Position
Personnel:
(i)
recruitment
(ii)
selection
(iii (iii))
trai traini ning ng and and dev devel elop opme ment nt
(iv) iv)
welfa elfare re acti activ viti ities
Production/operations:
(i)
products/services offered
(ii)
layout of th the facility
(iii)
quality co control
(iv) (iv)
pres presen entt & fut futur uree of the the com compa pany ny
Marketing:
(i)
Areas of operation
(ii)
Major competitors
(iii)
Market share
(iv)
Outlets in in co country
(v)
Market st strategy
5
Strengths of the organization
6
OTHERS: a) Key Key pers person onne nell b) Awards c) Abou Aboutt mutu mutual al fun funds ds CHAPTER 1 : INTRODUCTION CHAPTER 2 : METHODOLOGY (a) Object Objective ivess (b) Research methodology (c) The tools:
(i) For data analysis.
CHAPTER 3 : RESULTS CHAPTER 4 : SUGGESTIONS SUGGESTIONS AND IMPLICATION IMPLICATION CHAPTER 5 : CONCLUSION ANNEXURE: (i)
Questionnaire
(ii)
glossary
(iii)
references
1) COMPAN COMPANY’S Y’S PROFI PROFILE LE HISTORY:
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla Group's experience in the Indian market and Sun Life's global experience. Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading flagships of Mutual Funds business managing assets of a large investor base. Our solutions offer a range of invest investmen mentt option options, s, includ including ing divers diversifi ified ed and sector sector specif specific ic equity equity scheme schemes, s, fund fund of fund fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds. Birla Sun Life Asset Management Company has one of the largest team of research analysts in the industry, dedicated to tracking down the best companies to invest in. BSLAMC strives to provide transparent, ethical and research-based investments and wealth management services.
HERITAGE: The Aditya Birla Group: The Aditya Birla Group is one of India's largest business houses. Global in
vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The group operates in 26 countries – India, UK, Germany, Hungary, Brazil, Italy, Italy, France France,, Luxemb Luxembour ourg, g, Switze Switzerla rland, nd, Austra Australia lia,, USA, USA, Canada Canada,, Egypt Egypt,, China, China, Thaila Thailand nd,, Laos, Laos, Indonesia, Philippines, UAE, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia, Bahrain and Korea. A US $29 billion corporation in the League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary work force of 130,000 employees, belonging to 40 different nationalities. Over 60 per cent of its revenues flow from its operations across the world. The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminum, Copper, Cement, Viscose Staple Fiber, Carbon Black, Viscose Filament Yarn, Fertilizers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and Telecom. The Group has strategic joint ventures with global majors such as Sun Life (Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO sector with the acquisition of TransWorks, a leading ITES/BPO company.
Sun Life Life Fina Financi ncial al Inc Inc is a leadi leading ng inte intern rnat atio ional nal fina financi ncial al serv servic ices es Sun life financia financial: l: Sun organization providing a diverse range of wealth accumulation and protection products and services services to individual individualss and corporate customers. customers. Chartered Chartered in 1865, Sun Life Financial Financial Inc and
its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.
VISION: To be the most trusted name in investment and wealth management, to be the preferred employer in the industry and to be a catalyst for growth and excellence of the asset management business in India.
MISSION: To consistently pursue investor's wealth optimization by: •
Achieving superior and consistent investment results.
•
Creating a conducive environment to hone and retain talent.
•
Providing customer delight.
•
Institutionalizing system-approach in all aspects of functioning.
•
Upholding highest standards standards of ethical values at all times
VALUES: •
Integrity
•
Commitment
•
Passion
•
Seamlessness
•
Speed
POSITION: Today it is ranked at 5th position among the 42 asset management company (AMC) in the country.
2) PERS PERSON ONNE NEL L RECRUITMENT: Recruitment Recruitment is the processes of selection selection for prospectiv prospectivee employees employees simulating simulating them for apply for job in the organization. In other words it is linking activity bearing to gather with jobs, selection jobs. Recruitment makes it possible to acquire the number and type of people necessary to ensure the continued operation of the organization. “Recruitment is the process of searching for prospective employee and stimulating encouraging them to apply for jobs in an organization”. There are two sources of recruitment: (1) Internal sources: It includes promotion, transfer and demotion. demotion. (2) External sources: It includes advertisement, employment, on campus requirement, requirement, employee recommendation In Birla sun life mutual fund they are using internal as well as external sources. Their policies for external external sources sources is such that first they they give advertisement advertisement in newspaper newspaper and they have also contact with employment exchange through these source first of all collect application, separated and then after appropriate candidates are called for the interview.
SELECTION: After creating if application of required number of employees secured through different sources of recruitment the selection process begins. The main purpose of selection process is it finds the right man for each job. The efficiency and profitability of the concern depends mainly on proper selection of the personnel. Company select employees through commercial made of three numbers. One is the work manager, second is of manager and the third is the head department in which company exists.
TRAINING AND DEVELEOPMENT PROCESS: It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees. The system model consists of five phases and should be repeated on a regular basis to make further improvements. The training should achieve the purpose of helping employee to perform their work to required standards. The steps involved in System Model of training are as follows:
1. Analyze and identify the training needs i.e. to analyze the department, job, employees requirement, who needs training, what do they need to learn, estimating training cost, etc The next step is to develop a performance measure on the basis of which actual a ctual performance would Be evaluated. 2. Design meet identi identifi fied ed needs. needs. This This step step requir requires es develo developin ping g Design and provide provide trainin training g to meet objectives of training, identifying 3. Develop- This phase requires listing the activities in the training program that will assist the participants to learn, selecting delivery method, examining the training material, validating info inform rmat atio ion n to be impa impart rted ed to make make sure sure it acco accomp mpli lish shes es all all the the goal goalss & obje object ctiv ives es.. 4. Implementing is the hardest part of the system because one wrong step can lead to the failure of whole training program. 5. Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent work performance. Making necessary amendments a mendments to any of the previous stage in order to remedy or improve failure practices.
WELFARE ACTIVITIES: The Group actively involves itself in several community development initiatives – in particular around its manufacturing location. The group also supports development activities in areas like health healthcar care, e, educat education ion,, sus sustai tainab nable le livel liveliho ihood, od, infras infrastr truct ucture ure and social social causes. causes. The group' group'ss philanthropic activities are guided by Mrs. Rajashree Birla. Birla.[14] It works in 3,700 villages, reaching out to 7 million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development. It runs 45 schools and 18 hospitals
3) PRODUCTI PRODUCTION/O ON/OPERA PERATIONS TIONS:: PRODUCTS/SERVICES OFFERED: SERVICES:
Birla Sun Life offers extensive and thoughtfully devised financial services to its large base of customers across the globe to help them manage their finance in the most effective way. We can benefit a lot from its wide array of financial services in the areas of wealth management, mutual funds and insurance plans. The mutual fund products and services are provided by investment managers of the Birla Sun Life Asset Management Company Ltd. (BSLAMC). The company has been formed by the joint efforts of Aditya Birla group and the sun life financial services Inc. of Canada. The wealth management services are exclusively handled by the Birla Sun Life Distribution Company Limited (BSDL). This is the subsidiary company of Aditya Birla Nuvo Ltd. The life insurance business is taken care of by the Birla Sun Life Insurance Company Limited (BSLI) (BSLI).. The tie-up tie-up betwee between n Aditya Aditya Birla Birla Group Group and Canada Canada-bas -based ed Sun Life Life Financi Financial al Inc resulted in the existence of this one of the topnotch insurance companies in India. PRODUCTS: •
Direct Equity
•
Mutual Funds
•
Structured Products
•
Portfolio Management System (PMS)
•
Alternate Asset Products
•
Loan Against Securities and Mutual Funds
•
Real Estate
•
Life Insurance
•
Gold
SERVICES BY BIRLA SUN LIFE MUTUAL FUND:
1. Highl Highly y proac proacti tive ve ser servi vice cess 2. Onli Online ne Por Portf tfol olio io Acc Acces esss 3. Regul Regular ar Port Portfo foli lio o Revie Reviews ws 4. Fina Financ ncia iall plan planni ning ng 5. Research PRODUCTS OF BIRLA SUN LIFE MUTUAL FUND: Equity Schemes
o
Diversified Fund
o
Theme Based Fund
o
Sectoral Fund
Debt Schemes
o
Interval Income Funds
o
Fixed Maturity Plan
o
Fixed Term Funds
o
Short Term Fund
o
Long Term Fund
o
Floating Fund
o
Gilt Fund
o
Cash Fund
Hybrid Schemes
o
Capital Protection Fund
o
Balanced Fund
o
Fund of Funds
o
MIP
Products offered: Scheme Code
Scheme Name
NAV Date
NAV (Rs.)
24/06/2012
Subscription Redemption Price
Price
11.57920
11.5792
11.4634
24/06/2012
9.28650
9.2865
9.1936
24/06/2012
15.50490
15.5049
15.3499
24/06/2012
12.89140
12.8914
12.5047
24/06/2012
12.89140
12.8914
12.5047
24/06/2012
11.57920
11.5792
11.4634
24/06/2012
13.40000
13.4
13.4
24/06/2012
9.74000
9.74
9.64
24/06/2012
75.32000
75.32
75.32
203RD Bsl Commodity Equities Fund-global 24/06/2012
15.71320
15.7132
15.2418
295D
298D
296D
202RD
202RG
295G 231G 935G 02
Birla Sun Life Small And Midcap Fund – Dividend Birla Sun Life International Equity Fund - Plan B – Dividend Birla Sun life Pure Value Fund – Dividend Bsl Com Commod modity ity Equ Equiti ities es Fund Fund-gl -global obal Precious Metals Plan-retail-dividend Bsl Com Commod modity ity Equ Equiti ities es Fund Fund-gl -global obal Precious Metals Plan-retail-growth Birla Sun Life Small And Midcap Fund – Growth Birla Sun Lifetax Plan – Growth Birl Bi rlaa Su Sun n Li Life fe In Indi diaa Re Refo form rmss Fu Fundndgrowth Bsl Tax Relief 96 – Dividend
Agri Plan-retail-dividend 203RG
297G
935D 02G 299G
299G
299D
296G
204RG
204RD
298G
297D
201D
201G
261D
Bsl Com Commod modity ity Equ Equiti ities es Fund Fund-gl -global obal Agri Plan-retail-growth Birl Bi rlaa Su Sun n Li Life fe In Inte tern rnat atio iona nall Eq Equi uity ty Fund-plan A –growth Birl Bi rlaa Su Sun n Li Life fe In Indi diaa Re Refo form rmss Fu Fundnddividend Birla Sun Lifetaxrelief 96 - Growth Birla Sun Life Special Situations Fund – Growth
24/06/2012
15.71320
15.7132
15.2418
24/06/2012
9.63850
9.6385
9.6385
24/06/2012
9.74000
9.74
9.64
24/06/2012
10.68000
10.68
10.68
24/06/2012
9.34310
9.3431
9.2497
Birla Sun Life Special Situations Fund – Growth Birla Sun Life Special Situations Fund – Dividend Dividend Birl Bi rla a Su Sun n li life fe Pu Pure re Va Valu luee Fu Fund nd – Growth Bsl Com Commodi modity ty Equ Equitie itiess Fun Fund-gl d-global obal Multi Commodity Plan-retail-growth Bsl Com Commodi modity ty Equ Equitie itiess Fun Fund-gl d-global obal Multi Commodity Plan-retail-dividend Birla Bir la Su Sun n Lif Lifee In Inter terna natio tional nal Eq Equit uity y Fund -plan B-growth Birla Bir la Su Sun n Lif Lifee In Inter terna natio tional nal Eq Equit uity y Fund-plan A –dividend Birl Bi rla a Su Sun n Li Life fe Ad Adva vant ntag agee Fu Fund nd – Dividend Birl Bi rla a Su Sun n Li Life fe Ad Adva vant ntag agee Fu Fund nd – Growth Birla Sun Life Dividend Yield Plus – Dividend
24/06/2012
9.34310
9.3431
9.2497
24/06/2012
9.34310
9.3431
9.2497
24/06/2012
16.54790
16.5479
16.3824
24/06/2012
13.24970
13.2497
12.8522
24/06/2012
13.24970
13.2497
12.8522
24/06/2012
9.28650
9.2865
9.1936
24/06/2012
9.63850
9.6385
9.6385
24/06/2012
76.64000
76.64
76.26
24/06/2012
149.79000
149.79
149.04
24/06/2012
13.08000
13.08
12.95
261G
251D
251G
291D
291G
292D 292G 29 2G 293D
293G
Birla Sun Life Dividend Yield Plus –
24/06/2012
83.96000
83.96
83.12
24/06/2012
21.19000
21.19
20.98
24/06/2012
104.50000
104.5
103.46
24/06/2012
14.04000
14.04
13.9
24/06/2012
24.89000
24.89
24.64
24/06/2012
13.83230
13.8323
13.7631
Birl Bi rla a Sun Sun Li Life fe To Top p 100 100 Fu Fund nd - Gro Growt wth h 24/06/2012
22.45730
22.4573
22.345
24/06/2012
10.68000
10.68
10.57
24/06/2012
15.51000
15.51
15.35
Growth Birla Sun Life Midcap Fund -plan ADividend Birla Sun Life Midcap Fund -plan A – Growth Birla Sun Life India Generation Next Fund – Dividend Birla Sun Life India Generation Next Fund – Growth Birla Sun Life Top 100 Fund – Dividend
Birla Birl a Sun Life Infr Infrastr astructu ucture re Fun Fund d Plan A –dividend Birla Birl a Sun Life Infr Infrastr astructu ucture re Fun Fund d Plan A-growth
221D 22 1D
Birl Bi rla a Sun Sun Li Life fe Mn Mncc – Div Divid iden end d
24/06/2012
79.41000
79.41
78.62
221G 22 1G
Birl Bi rla a Su Sun n Li Life fe Mn Mncc – Gro rowt wth h
24/06/2012
210.86000
210.86
208.75
24/06/2012
16.04000
16.04
15.96
24/06/2012
50.73000
50.73
50
211D
211G
Birla Bir la Su Sun n Li Life fe Ind India ia Op Oppo portu rtunit nities ies Fund – Dividend Birla Bir la Su Sun n Li Life fe Ind India ia Op Oppo portu rtunit nities ies Fund – Growth
241D 24 1D
Birl Bi rla a Sun Sun Li Life fe In Inde dex x Fun Fund d - Di Divi vide dend nd
24/06/2012
20.86770
20.8677
20.7634
241G 24 1G
Birl Bi rla a Sun Sun Li Life fe In Inde dex x Fu Fund nd - Gro Growt wth h
24/06/2012
53.98360
53.9836
53.7137
231D 23 1D
Birl Bi rla a Sun Sun Li Life fe Tax Tax Pl Plan an - Div Divid iden end d
24/06/2012
44.16000
44.16
44.16
24/06/2012
15.13000
15.13
14.98
24/06/2012
32.14000
32.14
31.82
281D
281G
Birla
Sun
Life
Freedom
Fund
–
Life
Freedom
Fund
–
Dividend Birla
Sun
Growth
271D
Birla Tax plan 98
31/03/2010
207.78000
0
207.78
A
Birla Sun Life 95 Fund - Dividend
24/06/2012
105.53000
105.53
104.47
AG
Birla Sun Life 95 Fund – Growth
24/06/2012
308.73000
308.73
305.64
24/06/2012
24.91000
24.91
24.66
29/06/2011
10.86000
10.86
10.75
24/06/2012
94.45000
94.45
93.51
24/06/2012
21.55000
21.55
21.44
24/06/2012
40.84000
40.84
40.64
21
23
22
11
12
Birla Sun Life Basic Industries Fund – Dividend Birla Sun Life Basic Industries Fund Dividend Trigger Birla Sun Life Basic Industries Fund – Growth Bir irlla Sun Life Buy India Fun und d – Dividend Bir irlla Sun Life Buy India Fun und d – Growth
Birla Sun Life Equity Fund - Growth
205RD
205ID
205RG 52 91
92
15
Birla Sun Life Enhanced Arbitrage Fund -retail Plan –dividend Birla Sun Life Enhanced Arbitrage Fund -institutional Plan –dividend Birla Sun Life Enhanced Arbitrage Fund -retail Plan –growth Birla Sun Life Equity Fund - Dividend Birla Sun Life Frontline Equity Fund Plan A – Dividend Birla Sun Life Frontline Equity Fund Plan A – Growth Birla Sun Life New Millennium Fund – Dividend
24/06/2012
246 . 810 00
246.81
244.34
24/06/2012
10.78910
10.7891
10.7082
16/08/2011
10.16280
10.1628
10.0866
24/06/2012
11.04800
11.048
10.9651
24/06/2012
62.17000
62.17
61.55
24/06/2012
20.68000
20.68
20.47
24/06/2012
86.03000
86.03
85.17
24/06/2012
12.38000
12.38
12.26
16
294D
294G
292RD
Birla Sun Life New Millennium Fund – Growth Birl Bi rlaa Su Sun n Li Life fe Lo Long ng Te Term rm Ad Advan vanta tage ge Fund – Dividend Birl Bi rlaa Su Sun n Li Life fe Lo Long ng Te Term rm Ad Advan vanta tage ge Fund – Growth Birla Sun Life Top 100 Fund - Dividend Reinvest
251HD Bsl Midcap Fund - Plan - B - Dividend 281RD
299RD
91D
293RD
21D
202DD
204DD
AD
Birla Sun Life Freedom Fund - Dividend Reinvest Bsl Special Situations Fund - Dividend Reinvest Bsl Frontline Equity Fund - Plan B – Dividend Birla Sun Life Infrastructure Fund -plan A - Dividend Reinvest Birla Sun Life Basic Industries Fund Dividend Reinvest Bsl Cef - Global Precious Metals Planretail Dividend Reinvest Bsl Cef - Global Multi Commodity Planretail Dividend Reinvest Birrla Su Bi Sun n Lif ifee '95 Fu Fund nd - Di Divi vide dend nd Reinvest
935DR Bsl India Reforms Fund -div Reinvest 52D
293F
Birla Sun Life Equity Fund - Dividend Reinvest Birlaa Sun Life Infr Birl Infrastru astructure cture Fund-plan B-dividend
24/06/2012
18.96000
18.96
18.77
24/06/2012
12.72000
12.72
12.72
24/06/2012
13.77000
13.77
13.77
24/06/2012
13.83230
13.8323
13.7631
11/02/2012
12.51000
12.51
12.38
24/06/2012
15.13000
15.13
14.98
24/06/2012
9.34310
9. 34 31
9.2497
11/02/2012
12.50000
12.5
12.38
24/06/2012
10.68000
10.68
10.57
24/06/2012
24.91000
24.91
24.66
24/06/2012
12.89140
12.8914
12.5047
24/06/2012
13.24970
13.2497
12.8522
24/06/2012
1 05. 5 300 0
105.53
104.47
24/06/2012
9.74000
9. 74
9.64
24/06/2012
62.17000
62.17
61.55
11/02/2012
10.97000
10.97
10.86
02D
11D
221RD
203DD
91BD
251DD
293E
297RD
205DD
91G
202DD
21D
293RD
91D
299RD
Tax Ta x Re Reli lief ef '9 '96 6 Fu Fund nd-l -les esss - Di Divi vide dend nd Reinvest Birla Sun Life Buy India Fund - Dividend Reinvest Birl Bi rlaa Su Sun n Li Life fe Mn Mncc Fu Fund nd - Di Divi vide dend nd Reinvest Bsl
Cef
-
Global
Agri
Plann-rretail
Dividend Reinvest Birl Bi rlaa Sun Li Life fe Fr Fron ontl tlin inee Eq Equi uity ty Fun Fund d -plan B- Dividend Reinvest Birl Bi rlaa Su Sun n Li Life fe Mi Midca dcap p Fun Fund d -p -pla lan n BDividend Reinvest Birlaa Sun Life Infr Birl Infrastru astructure cture Fund-plan B-growth Bsl International Equity-plan-a -dividend Reinvest Birla Sun Life Enhanced Arbitrage Fund - Retail - Dividend Reinvest Bsl Frontline Equity Fund - Plan B – Growth Bsl Cef - Global Precious Metals Planretail Dividend Reinvest Birla Sun Life Basic Industries Fund Dividend Reinvest Birla Sun Life Infrastructure Fund -plan A - Dividend Reinvest Birla Sun Life Frontline Equity Fund Plan B – Dividend Birla Sun Life Special Situations Fund Dividend Reinvest
24/06/2012
75.32000
75.32
75.32
24/06/2012
21.55000
21.55
21.55
24/06/2012
79.41000
79.41
78.62
24/06/2012
15.71320
15.7132
15.2418
11/02/2012
12.50000
12.5
12.38
11/02/2012
12.51000
12.51
12.38
11/02/2012
11.43000
11.43
11.32
24/06/2012
9.63850
9. 63 85
9.6385
24/06/2012
10.78910
10.7891
10.7082
11/02/2012
12.50000
12.5
12.38
24/06/2012
12.89140
12.8914
12.5047
24/06/2012
24.91000
24.91
24.66
24/06/2012
10.68000
10.68
10.57
11/02/2012
12.50000
12.5
12.38
24/06/2012
9.34310
9. 34 31
9.2497
281RD
251HD
Birla Sun Life Freedom Fund - Dividend Reinvest Birla Sun Life Midcap Fund - Plan - B Dividend Birl Bi rlaa Sun Li Life fe Fr Fron ontl tlin inee Eq Equi uity ty Fun Fund d
91DD
-plan A- Dividend Reinvest
291RD
Birla Sun Life India Gen next Fund Dividend Reinvest Birla Sun Life New Millennium Fund -
15D
Dividend Reinvest
251HG Bsl Midcap Fund - Plan B - Growth 298RD
Bsl International Equity Fund -plan-b Dividend Reinvest
24/06/2012
15.13000
15.13
14.98
11/02/2012
12.51000
12.51
12.38
24/06/2012
20.68000
20.68
20.47
24/06/2012
14.04000
14.04
13.9
24/06/2012
12.38000
12.38
12.26
11/02/2012
12.51000
12.51
12.38
24/06/2012
9.28650
9. 28 65
9.1936
OFFSHORE
Scheme Code IAF
Scheme Name
NAV Date
India Advantage (offshore) Fund
22/06/2012
DEBT
NAV
Subscription Redemption
(US$)
Price
Price
2 10 .77
210.77
210.7700 0
Scheme Code 352G
31AP
913RD
332DD
353G
303G
351D
352D
332MD
75ID
83FD 912IG 341ID
303QD
Scheme Name
NAV Date
Birla Birla Sun Life Capital Capital Protection Protection Oriented Fund (5 Year)-growth Birl Birlaa Sun Sun Life Life Incom Incomee Fund Fund Disc Discip ipli line ne Advantage Plan Birl Birlaa Sun Sun Life Life Fixe Fixed d Term Term Reta Retail il Af Dividend Birla Birla Sun life Savings Savings Fund-instit Fund-institutiona utionall Plan-daily Dividend Bsl Bsl Capi Capita tall Prot Protec ecti tion on Orie Orient nted ed Fund Fund Series 1 – Growth Birla Sun Life Medium Term Plan - Retail – Growth Birla Birla Sun Life Capital Capital Protection Protection Oriented Fund (3 Year)-dividend Birla Birla Sun Life Capital Capital Protection Protection Oriented Fund (5 Year)-dividend Birla Birla Sun life Savings Savings Fund-instit Fund-institutiona utionall Plan -monthly Dividend Birla Sun Life Govt.securities Short Term Instl-dividend Birla
Sun Life
Short Term
Fund -
Fortnightly-dividend Bsl Ftp Institutional Series Ba - Growth Birla Sun Life Short Term Opportunities Fund Instl Dividend Plan Birla Sun Life Medium Term Plan - Retail - Quarterly Dividend
NAV
Subscription Redemption
(Rs.)
Price
Price
24/06/2012
12.52950 12.5295
12.5295
24/06/2012
11.22990 11.2299
11.1738
27/08/2012
10.00000 10
9.7
24/06/2012
10.00680 10.0068
10.0068
24/06/2012
10.56960 10.5696
10.5696
24/06/2012
11.56920 11.5692
11.5403
03/08/2012
10.00000 10
10
24/06/2012
12.52950 12.5295
12.5295
11/02/2012
10.30990 10.3099
10.3099
24/06/2012
10.00000 10
10
24/06/2012
10.38280 10.3828
10.3568
13/08/2010
11.12010 11.1201
10.8977
24/06/2012
10.35650 10.3565
10.3306
11/02/2012
10.19910 10.1991
10.1736
911IG 331WD
304QD
341IG
303MD
760RG
85DD
512DD
913ID 912RD 304WD
304QD
75IDD
301AP
Bsl Ftp Instl Series Az – Growth Birla Sun life Savings Fund-retail- Weekly Dividend Birl Birlaa Sun Sun Lif Life Medi edium Ter Term Plan Plan Institutional - Quarterly Dividend Birla Sun Life Short Term Opportunities Institutional Growth Birla Sun Life Medium Term Plan - Retail - Monthly Dividend Birla Sun Life Equity Linked Fmp-series A-retail-growth Birla Sun Life Short Term Fund Instl Daily Dividend Birl Birlaa Sun Sun life life Floa Floati ting ng Rate Rate FundFund-lo long ng Term Plan-daily Dividend Birla Sun Life Fix Fixed Term Inst nstl Af Dividend Bsl Ftp Retail Series Ba - Dividend Birla
Sun
Life
Medium Term
Plan
-institutional - Weekly Dividend Bir Birla Sun Sun Life Life Medi Medium um Term Term Plan Plan Institutional - Quarterly Dividend Birla Sun Life Govt.securities Short Term Instl-daily Dividend Birl Birlaa Sun Sun Life Life Inco Income me Plus Plus Disc Discip ipli line ne Advantage Plan
28/07/2010
11.12150 0
10.8991
24/06/2012
10.01760 10.0176
10.0176
11/02/2012
10.21730 10.2173
10.1918
24/06/2012
11.45330 11.4533
11.4247
24/06/2012
10.29220 10.2922
10.2665
22/06/2012
12.34180 12.3418
12.095
24/06/2012
10.00550 10.0055
9.9805
11/02/2012
10.00500 10.005
9.98
27/08/2011
10.00000 10
9.7
13/08/2010
10.00000 10
9.8
24/06/2012
10.04310 10.0431
10.018
11/02/2012
10.21730 10.2173
10.1918
06/11/2010
10.00000 10
10
24/06/2012
11.22390 11.2239
11.1958
911ID
Bsl Ftp Instl Series Az – Dividend
28/07/2010
10.00000 0
9.8
912ID
Bsl Ftp Institutional Series Ba - Dividend
13/08/2010
10.00000 10
9.8
303MD
Birla Sun Life Medium Term Plan - Retail - 24 24/06/2012
10.29220 10.2922
10.2665
Monthly Dividend 760RG
85DD
331MD
75IWD
Birla Sun Life Equity Linked Fmp-series A-retail-growth Birla Sun Life Short Term Fund Instl Daily Dividend Birla Sun life Savings Fund-retail -monthly Dividend Birla Sun Life Govt.securities Short Term Instl-weekly Dividend
22/06/2012
12.34180 12.3418
12.095
24/06/2012
10.00550 10.0055
9.9805
11/02/2012
10.28480 10.2848
10.2848
28/08/2010
10.00000 10
10
914RG
Birla Sun Life Ftp-retail-series Bb-growth
08/09/2010
11.11150 11.1115
10.8893
911RD
Ftp Retail Series Az – Dividend
28/07/2010
10.00000 0
9.8
24/06/2012
11.22780 11.2278
11.1997
08/09/2010
11.15880 11.1588
10.9356
24/06/2012
10.01860 10.0186
10.0186
11/02/2012
10.00500 10.005
9.98
27/08/2011
10.00000 10
9.7
13/08/2010
10.00000 10
9.8
24/06/2012
10.04310 10.0431
10.018
24/06/2012
10.00680 10.0068
10.0068
24/06/2012
10.58530 10.5853
10.5324
04/09/2009
0
0
304G 914IG 332WD
512DD
913ID 912RD 304WD
331DD
321MD
761ID 304FD
Bir Birla Sun Sun Life Life Medi Medium um Term Term Plan Plan Institutional – Growth Birla Sun Life Ftp-instl-series Bb-growth Birla Birla Sun life life Savings Savings Fund-in Fund-insti stitut tutiona ionall Plan-weekly Dividend Birl Birlaa Sun Sun life life Floa Floati ting ng Rate Rate FundFund-lo long ng Term Plan-daily Dividend Birla Sun Life Fixed Term Instl Af Dividend Bsl Ftp Retail Series Ba - Dividend Birla
Sun
Life
Medium
Term
Plan
-institutional - Weekly Dividend Birla Birla Sun Life Life Savings Savings Fund-r Fund-reta etail il Daily Daily Dividend Birla Sun Life Dynamic Bond Fund - Retail Plan Monthly Dividend Birla Sun Life Equity Linked Fmp-series B-instl-dividend
Birla Sun Life Medium Term Plan - 24/06/2012
0
10.22900 10.229
10.2034
Institutional - Fortnightly Dividend 75DD 913IG 304MD 914RG 83DD
351G 911RG 301QD
Birla Sun Life Govt Securities Short Term
24/06/2012
10.00310 10.0031
10.0031
Birla Su Sun Li Life Fi Fixed Te Term Instl Af Growth 27/08/2011
12.33150 12.3315
11.9616
24/06/2012
10.24890 10.2489
10.2233
08/09/2010
11.11150 11.1115
10.8893
24/06/2010
10.00550 10.0055
9.9805
03/08/2012
11.70580 11.7058
11.7058
28/07/2010
11.06350 0
10.8422
24/06/2012
11.92600 11.926
11.8962
Retail Daily Dividend
Bir Birla Sun Sun Life Life Medi Medium um Term Term Plan Plan Institutional - Monthly Dividend Birla Sun Life Ftp-retail-series Bb-growth Birla Sun Life Short Term Fund -retail Plan -daily Dividend Birla Sun Life Capital Protection Oriented Fund (3 Year)-growth Bsl Ftp Retail Series Az-growth Birl Birlaa Sun Sun Life Life Incom Incomee Plus Plus - Quar Quarte terl rly y Dividend
301G
Birla Sun Life Income Plus - Growth
24/06/2012
44.50290 44.5029
44.3916
311MD
Birla Sun Life Mip – Dividend
24/06/2012
11.29460 11.2946
11.2664
311MP
Birla Sun Life Mip – Payment
24/06/2012
26.70100 26.701
26.6342
311G
Birla Sun Life Mip – Growth
24/06/2012
26.70100 26.701
26.6342
312MD
Birla Sun Life Mip Saving 5 - Dividend
24/06/2012
11.26850 11.2685
11.1558
312MP
Birla Sun Life Mip Saving 5 - Payment
24/06/2012
17.80750 17.8075
17.6294
312G
Birla Sun Life Mip Saving 5 - Growth
24/06/2012
17.80750 17.8075
17.6294
313MD
Birla Sun Life Mip Wealth 25 - Dividend
24/06/2012
11.26370 11.2637
11.1511
313MP
Birla Sun Life Mip Wealth 25 - Payment
24/06/2012
17.99200 17.992
17.8121
313G
Birla Sun Life Mip Wealth 25 - Growth
24/06/2012
17.99200 17.992
17.8121
24/06/2012
10.42090 10.4209
10.4209
24/06/2012
10.29820 10.2982
10.2982
401QD
401AD
Birla Sun Sun Life Gilt Plus - Liquid Quarterly Dividend Birla Sun Life Gilt Plus - Liquid - Annual Dividend
401G
Birla Sun Life Gilt Plus - Liquid - Growth
24/06/2012
22.74780 22.7478
22.7478
403QD
Birla Sun Life Gilt Plus - Pf Plan - 24/06/2012
10.27550 10.2755
10.2755
Quarterly Dividend 403AD 402AG 404QD
404AD
404G
512MD
512G
331FD 331G 332FD
332G
321QD
321G
341QD
341G 402IG
Birla Sun Life Gilt Plus - Pf Plan - Annual
11/02/2012
18.48120 18.4812
18.4812
Birla Sun Life Gilt Plus - Pf Plan - Growth 24/06/2012
25.27430 25.2743
25.0216
24/06/2012
12.11710 12.1171
12.1171
11/02/2012
23.75520 23.7552
23.7552
24/06/2012
32.34760 32.3476
32.3476
11/02/2012
10.58760 10.5876
10.5611
24/06/2012
17.17220 17.1722
17.1293
11/02/2012
11.33760 11.3376
11.3376
Birla Sun Life Savings Fund-retail Growth 24/06/2012
18.55260 18.5526
18.5526
11/02/2012
10.90920 10.9092
10.9092
24/06/2012
19.04100 19.041
19.041
24/06/2012
11.48620 11.4862
11.4288
24/06/2012
16.67870 16.6787
16.5953
24/06/2012
10.51060 10.5106
10.4843
24/06/2012
15.64310 15.6431
15.604
Birla Sun Life Gilt Plus - Pf Plan - Growth- 24/06/2012
25.27430 25.2743
25.0216
Dividend
Birl Birlaa Sun Sun Life Life Gilt Gilt Plus Plus - Regul Regular ar Plan Plan -quarterly Dividend Birla Sun Life Gilt Plus - Regular Plan Annual Dividend Birla Sun Life Gilt Plus - Regular Plan – Growth Birla Sun Life Floating Rate Fund - Long Term Plan – Dividend Birla Sun Life Floating Rate Fund - Long Term Plan – Growth Birla
Sun
life
Savings ngs
Fundnd-retail
Dividend- Fortnightly
Birla Birla Sun Life Savings Fund - Instituti Institutional onal Dividend Birla Birla Sun Life Savings Fund - Instituti Institutional onal Growth Birla Sun Life Dynamic Bond Fund - Retail Quarterly Dividend Birla Sun Life Dynamic Bond Fund - Retail Growth Birla Sun Life Short Term Opportunities -quarterly Dividend Birla Sun Life Short Term Opportunitiesgrowth
Instand-gain 77
78
75
76
31 32 33 34 35 36 37
61
62 63 83
84 512WD
Birla Sun Life Govt. Securities Long Term
24/06/2012
11.36880 11.3688
11.3688
24/06/2012
28.70160 28.7016
28.7016
11/02/2012
10.20170 10.2017
10.2017
24/06/2012
19.36990 19.3699
19.3699
11/02/2012
11.75350 11.7535
11.6947
24/06/2012
36.57580 36.5758
36.3929
11/02/2012
10.64570 10.6457
10.5925
Birla Sun Life Income Fund - 54ea Growth 11/02/2012
35.29860 35.2986
35.1221
11/02/2012
15.57080 15.5708
15.4929
Birla Sun Life Income Fund - 54eb Growth 11/02/2012
35.07630 35.0763
34.9009
24/06/2012
11.33700 11.337
11.2803
24/06/2012
11.28770 11.2877
11.1748
24/06/2012
11.91260 11.9126
11.7935
24/06/2012
36.97670 36.9767
36.6069
11/02/2012
10.80680 10.8068
10.7798
24/06/2012
18.05750 18.0575
18.0124
Birla Fl Floating Ra Rate Fu Fund-long Te Term Pl Plan- 24/06/2012
10.00780 10.0078
9.9828
Dividend Birla Sun Life Govt. Securities Long Term Growth Birla Sun Life Govt Securities Short Term Retail Dividend Birla Sun Life Govt. Securities Short Term Retail Growth Birla Sun Life Income Fund - Half Yearly Dividend Birla Sun Life Income Fund - Growth Birla Sun Life Inco ncome Fund - 54ea Dividend
Birla Sun Life Income Fund - 54eb 4eb Dividend
Birla Sun Life Income Fund - Quarterly Dividend Birla Sun Life Monthly Income - Monthly Dividend Birla Sun Life Monthly Income - Quarterly Dividend Birla Sun Life Monthly Income - Growth Birla Sun Life Short Term Fund - Monthly Dividend Birla Sun Life Ultra Short Term Fund – Growth
weekly Dividend 31D
953G
403A
957G
331M
953D 934G 950G
966G
968G
969G
982G
970D
403Q
401Q
Birla Sun Life Income Fund - Half Yearly Dividend Reinvest Birla Sun Life Short Term Fmp - Series 6 Growth Birl Birlaa Sun Sun Life Life Gilt Gilt Plus Plus - PfPf- Annu Annual al Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cq Growth Birla Sun Life Savings Fund-retail-monthly Dividend Reinvest Birla Sun Life Short Term Fmp - Series 6 Dividend Bsl Fixed Term Plan Series Cd - Growth Birla Sun Life Fixed Term Plan - Series Cm Growth Birla Sun Life Short Term Fmp Series 11 Growth Birla Sun Life Fixed Term Plan Series Cv Growth Birla Sun Life Short Term Fmp Series 13 Growth Birla Sun Life Short Term Fmp Series 16 Growth Birla Sun Life Fixed Term Plan Series Cw Dividend Birla Sun Life Gilt Plus - Pf- Quarterly Dividend Reinvest Bsl Gilt Gilt Plus-l Plus-liqu iquidid-qua quarte rterly rly Divide Dividend nd Reinvestment
11/02/2012
11.75350 11.7535
11.6947
28/04/2012
10.22920 10.2292
10.2292
11/02/2012
18.48120 18.4812
18.4812
24/06/2012
10.34300 10.343
10.343
11/02/2012
10.28480 10.2848
10.2848
28/04/2012
10.00000 10
10
05/04/2012
10.66630 10.6663
10.6663
24/06/2012
10.38690 10.3869
10.3869
08/06/2012
10.24710 10.2471
10.2471
24/06/2012
10.26250 10.2625
10.2625
24/06/2012
10.27240 10.2724
10.2724
24/06/2012
10.03940 10.0394
10.0394
24/06/2012
10.26430 10.2643
10.2643
24/06/2012
10.27550 10.2755
10.2755
24/06/2012
10.42090 10.4209
10.4209
952D 984G 341WD
966D
33D
952G
Birla Sun Life Fixed Term Plan - Series Cn Dividend Bsl Short Term Fmp Series 18 Growth Birla Sun Life Short Term Opportunities Fund-retail-weekly Dividend Birla Sun Life Short Term Fmp Series 11 Dividend Birla Sun Life Inco ncome Fund - 54ea Dividend Reinvest Birla Sun Life Fixed Term Plan - Series Cn Growth
936D
Bsl Fixed Term Plan Series Ce - Dividend
512 512ID
Bsl Floating Rate- Lt- Instl – Dd
404Q
982D
401A
303Q
971D
967D
312M
Birla Sun Life Gilt Plus - Regular Quarterly Dividend Reinvest Birla Sun Life Short Term Fmp Series 16 Dividend Birla Sun Life Gilt Plus - Liquid - Annual Dividend Reinvest Bsl Medium Term Plan - Retail - Quarterly Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cx Dividend Birla Sun Life Short Term Fmp Series 12 Dividend Birla Sun Life Mip Ii - Savings 5 Plan Monthly Dividend Reinvest
24/06/2012
10.36390 10.3639
10.3639
24/06/2012
10.00430 10.0043
10.0043
24/06/2012
10.01110 10.0111
9.9861
08/06/2012
10.00000 10
10
11/02/2012
10.64570 10.6457
10.5925
24/06/2012
10.36390 10.3639
10.3639
24/06/2012
10.55100 10.551
10.551
10.00000 10
9.975
24/06/2012
12.11710 12.1171
12.1171
24/06/2012
10.03940 10.0394
10.0394
24/06/2012
10.29820 10.2982
10.2982
11/02/2012
10.19910 10.1991
10.1736
24/06/2012
10.22630 10.2263
10.2263
15/06/2012
10.00000 10
10
24/06/2012
11.26850 11.2685
11.1558
24/06/2012
983D
Bsl Short Term Fmp Series 17 Dividend
24/06/2012
10.03510 10.0351
10.0351
602DD
Birla Sun Life Asset Allocation Fund - 24/06/2012
28.11260 28.1126
28.1126
Moderate Plan - Dividend Reinvest 963G
954G
968G
969G
948G
951G
601DD
951D
75D
964G
954D
512M 932G 957D
61D
Bsl Capital Protection Oriented Fund Series 5 – Growth Birla Sun Life Fixed Term Plan Series Co Growth Birla Sun Life Fixed Term Plan Series Cv Growth Birla Sun Life Short Term Fmp Series 13 Growth Bsl Bsl Capi Capita tall Prot Protect ectio ion n Orie Orient nted ed Fund Fund Series 3-growth Birla Sun Life Short Term Fmp - Series 5 Growth Birl Birlaa Sun Sun Life Life As Asse sett Allo Allocat catio ion n Fund Fund Aggressive Plan - Dividend Reinvest Birla Sun Life Short Term Fmp - Series 5 Dividend Birla Sun Life Govt. Securities Short Term - Retail - Dividend Reinvest Birla Sun Life Fixed Term Plan Series Ct Growth Birla Sun Life Fixed Term Plan Series Co Dividend Birla Sun Life Floating Rate Fund - Retail Long Term - Monthly Dividend Reinvest Bsl Fixed Term Plan-series C B-growth Birla Sun Life Fixed Term Plan Series Cq – Dividend Birla Sun Life Monthly Income - Monthly Dividend Reinvest
24/06/2012
10.10620 10.1062
10.1062
24/06/2012
10.36960 10.3696
10.3696
24/06/2012
10.26250 10.2625
10.2625
24/06/2012
10.27240 10.2724
10.2724
24/06/2012
10.56720 10.5672
10.5672
21/04/2012
10.22710 10.2271
10.2271
24/06/2012
33.65690 33.6569
33.6569
21/04/2012
10.00000 10
10
11/02/2012
10.20170 10.2017
10.2017
24/06/2012
10.30640 10.3064
10.3064
24/06/2012
10.12520 10.1252
10.1252
11/02/2012
10.58760 10.5876
10.5611
24/06/2012
10.97250 10.9725
10.9725
24/06/2012
10.34300 10.343
10.343
24/06/2012
11.28770 11.2877
11.1748
61D
512IG
321Q
958D
956G
958G
321AP
964D
967G
966D
601DD
951D
75D
948G
951G
Birla Sun Life Monthly Income - Monthly Dividend Reinvest Bsl
Floating
Rate
Fund
Long
Term
Institutional Plan Growth Birla Sun Life Dynamic Bond Fund - Retail - Quarterly Dividend Reinvest Birla Sun Life Short Term Fmp Series 8 – Dividend Birla Sun Life Fixed Term Plan Series Cp Growth Birla Sun Life Short Term Fmp Series 8 Growth Bsl
Dynam ynamiic
Bond Bond
Fund Fund
Dis Discipl ciplin inee
Advantage Plan Growth Birla Sun Life Fixed Term Plan Series Ct Dividend Birla Sun Life Short Term Fmp Series 12 Growth Birla Sun Life Short Term Fmp Series 11 Dividend Birl Birlaa Sun Sun Life Life As Asse sett Allo Allocat catio ion n Fund Fund Aggressive Plan - Dividend Reinvest Birla Sun Life Short Term Fmp - Series 5 Dividend Birla Sun Life Govt. Securities Short Term - Retail - Dividend Reinvest Bsl Bsl Capi Capita tall Prot Protect ectio ion n Orie Orient nted ed Fund Fund Series 3-growth Birla Sun Life Short Term Fmp - Series 5 Growth
24/06/2012
11.28770 11.2877
11.1748
24/06/2012
11.81140 11.8114
11.7819
24/06/2012
11.48620 11.4862
11.4288
19/05/2012
10.00000 10
10
24/06/2012
10.35500 10.355
10.355
19/05/2012
10.24550 10.2455
10.2455
24/06/2012
11.53740 11.5374
11.4797
24/06/2012
10.30640 10.3064
10.3064
15/06/2012
10.24290 10.2429
10.2429
08/06/2012
10.00000 10
10
24/06/2012
33.65690 33.6569
33.6569
21/04/2012
10.00000 10
10
11/02/2012
10.20170 10.2017
10.2017
24/06/2012
10.56720 10.5672
10.5672
21/04/2012
10.22710 10.2271
10.2271
956D
37D
968D
62D
603DD
Birla Sun Life Fixed Term Plan Series Cp Dividend Birla Sun Life Income Fund - Quarterly Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cv Dividend Birla Sun Life Monthly Income - Quarterly Dividend Reinvest Birl Birlaa Sun Sun Life Life As Asse sett Allo Allocat catio ion n Fund Fund Conservative Plan - Dividend Reinvest
24/06/2012
10.35500 10.355
10.355
24/06/2012
11.33700 11.337
11.2803
24/06/2012
10.26250 10.2625
10.2625
24/06/2012
11.91260 11.9126
11.7935
24/06/2012
20.87820 20.8782
20.8782
931G
Bsl Fixed Term Plan-series C A-growth
08/06/2012
10.93220 10.9322
10.9322
954G
Birla Sun Life Fixed Term Plan Co Grwth 24/06/2012
10.36960 10.3696
10.3696
24/06/2012
10.33270 10.3327
10.3327
24/06/2012
10.26430 10.2643
10.2643
24/06/2012
10.22630 10.2263
10.2263
24/06/2012
11.92600 11.926
11.8962
24/06/2012
10.27230 10.2723
10.2723
24/06/2012
10.14740 10.1474
10.1474
24/06/2012
10.00430 10.0043
10.0043
11/02/2012
10.80680 10.8068
10.7798
24/06/2012
10.10310 10.1031
10.1031
Birla Sun Life Short Term Fmp Series 13 24/06/2012
10.11520 10.1152
10.1152
959G
970G
971G
301Q
965G
354G 984D 83D
977D 969D
Birla Sun Life Fixed Term Plan Series Cr Growth Birla Sun Life Fixed Term Plan Series Cw Growth Birla Sun Life Fixed Term Plan Series Cx Growth Birl Birlaa Sun Sun Life Life Incom Incomee Plus Plus - Quar Quarte terl rly y Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cu Growth Bsl Capital Protection Oriented Fund Series 2 – Growth Bsl Short Term Fmp Series 18 Dividend Birla Sun Life Short Term Fund - Retail Monthly Dividend Reinvest Birl Birlaa Sun Sun Life Life Fixe Fixed d Term Term Seri Series es Db Dividend
Dividend 341IW
961G 983G 77D 934G 341Q
404A
303F
965D
949G
961D
311M
Birla Sun Life Short Term Opportunities Fund-instl-weekly Dividend Birla Sun Life Fixed Term Plan Series Cs Growth Bsl Short Term Fmp Series 17 Growth Birla Sun Life Govt. Securities Long Term Dividend Reinvest Bsl Fixed Term Plan Series Cd - Growth Birla Sun Life Short Term Opportunities Fund-retail Dividend Reinvest Birla Sun Life Gilt Plus - Regular - Annual Dividend Reinvest Bsl Medium Term Plan -retail- Fortnightly Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cu Dividend Bsl Bsl Capi Capita tall Prot Protect ectio ion n Orie Orient nted ed Fund Fund Series 4-growth Birla Sun Life Fixed Term Plan Series Cs Dividend Birl Birlaa Sun Sun Life Life Mip Mip - Mo Mont nthl hly y Divi Divide dend nd Reinvest
24/06/2012
10.01110 10.0111
9.9861
24/06/2012
10.30220 10.3022
10.3022
24/06/2012
10.03510 10.0351
10.0351
24/06/2012
11.36880 11.3688
11.3688
05/04/2012
10.66630 10.6663
10.6663
24/06/2012
10.51060 10.5106
10.4843
11/02/2012
23.75520 23.7552
23.7552
24/06/2012
10.22730 10.2273
10.2017
24/06/2012
10.27230 10.2723
10.2723
24/06/2012
10.36900 10.369
10.369
24/06/2012
10.30220 10.3022
10.3022
24/06/2012
11.29460 11.2946
11.2664
CASH
Scheme Code 513G
Scheme Name Birla Sun Life Floating Rate Fund - Short Term - Ip – Growth
NAV Date
26/06/2012
NAV
Subscription
Redemption
(Rs.)
Price
Price
13.27480 13.2748
13.2748
513DD
513FD
513WD
501DD 501G 502DD
502WD
502FD
502G
503DD
503WD
503FD
503MD
503G
504DD 511DD
Birla Sun Life Floating Rate Fund - Short
26/06/2012
10.00200 10.002
10.002
11/02/2012
10.00000 10
10
26/06/2012
10.01260 10.0126
10.0126
26/06/2012
16.36940 16.3694
16.3694
26/06/2012
26.41360 26.4136
26.4136
26/06/2012
10.80230 10.8023
10.8023
26/06/2012
10.81180 10.8118
10.8118
11/02/2012
10.82100 10.821
10.821
26/06/2012
26.91620 26.9162
26.9162
26/06/2012
10.01950 10.0195
10.0195
26/06/2012
10.02720 10.0272
10.0272
11/02/2012
10.00000 10
10
11/02/2012
10.00000 10
10
26/06/2012
16.01920 16.0192
16.0192
07/05/2011
10.11750 10.1175
10.1175
Birla Su Sun Li Life Fl Floating Ra Rate Fu Fund - Sh Short 26 26/06/2012
10.00150 10.0015
10.0015
Term - Ip - Daily Dividend Birla Sun Life Floating Rate Fund - Short Term - Ip - Fortnightly Dividend Birla Sun Life Floating Rate Fund - Short Term - Ip - Weekly Dividend Birl Birlaa Sun Sun Life Life Cash Cash Plus Plus - Reta Retail il-- Dail Daily y Dividend Birla Sun Life Cash Plus - Retail Growth Birla Sun Life Cash Plus - Institutional Plan - Daily Dividend Birla Sun Life Cash Plus - Institutional Plan - Weekly Dividend Birla Sun Life Cash Plus - Institutional Plan - Fortnightly Dividend Birla Sun Life Cash Plus - Institutional Plan – Growth Birl Birlaa Sun Sun Life Life Cash Cash Plus Plus - Inst Instit itut utio ional nal Premium Plan - Daily Dividend Birl Birlaa Sun Sun Life Life Cash Cash Plus Plus - Inst Instit itut utio ional nal Premium Plan - Weekly Dividend Birl Birlaa Sun Sun Life Life Cash Cash Plus Plus - Inst Instit itut utio ional nal Premium Plan - Fortnightly Dividend Birl Birlaa Sun Sun Life Life Cash Cash Plus Plus - Inst Instit itut utio ional nal Premium Plan - Monthly Dividend Birl Birlaa Sun Sun Life Life Cash Cash Plus Plus - Inst Instit itut utio ional nal Premium Plan – Growth Birl Birlaa Sun Sun Life Life Cash Cash Plus Plus Swee Sweep p Plan Plan – Dividend
Term Plan - Daily Dividend 511G
511WD
44 43 47
45
46
977G
Birla Sun Life Floating Rate Fund - Short Term Plan – Growth Birla Sun Life Floating Rate Fund - Short Term Plan - Weekly Dividend Birl Birlaa Sun Sun Life Life Cash Cash Mana Manager ger - Week Weekly ly Dividend Birla Sun Life Cash Manager - Growth Birla Sun Life Cash Manager - Institutional Daily Dividend Birla Sun Life Cash Manager - Institutional Weekly Dividend Birla Sun Life Cash Manager - Institutional Plan – Growth Bir Birla Sun Sun Life ife Fixe Fixed d Ter Term Ser Series ies Db Growth
26/06/2012
16.47310 16.4731
16.4731
26/06/2012
10.37970 10.3797
10.3797
24/06/2012
10.00950 10.0095
10.0095
24/06/2012
24.31630 24.3163
24.3163
24/06/2012
10.00300 10.003
10.003
24/06/2012
10.00990 10.0099
10.0099
24/06/2012
16.76430 16.7643
16.7643
24/06/2012
10.10310 10.1031
10.1031
NAV
Subscription
Redemption
(Rs.)
Price
Price
FMP
Scheme Code 854D 846D 851D
Scheme Name Birla Fixed Term Plan-quarterly Series 18dividend Birla Ftp - Quarterly Series 14-dividend Birla Fixed Term Plan-24 Months-dividendretail
NAV Date
13/09/2008
10.00000 0
9 .9 5
06/08/2008
10.00000 0
9 .95
10/06/2010
10.00000 0
9 .6
846G
Birla Ftp-quarterly-series 14-growth
06/08/2008
10.25800 0
10.2067
824D
Birla Fixed Term Plan - Series P - Dividend 08/05/2009
11.18670 0
10.7392
12.06600 0
11.5834
851G
Birla Fixed Term Plan-24 Months-growthretail
10/06/2010
847D 853D 893RG 872D
856G 847G 854G
Birla Ftp-quarterly Series 15-dividend Birla Fixed Term Plan-quarterly Series 17dividend Birla Ftp Retail Series Aj - Growth Birla Sun Life Fixed Term Plan-series Ac Institutional-dividend Birl Birlaa
Fixe Fixed d
Term Term
Plan Plan-r -ret etai aill-se seri ries es
X
Growth Birla Ftp -quarterly-series 15-growth Birla Fixed Term Plan-quarterly Series 18growth
16/08/2008
10.00000 0
9 .95
06/09/2008
10.00000 0
9 .9 5
28/04/2010
11.11700 0
10.8947
10/10/2009
10.00000 0
9 .6
07/07/2009
10.91790 0
10.5904
16/08/2008
10.24780 0
10.1966
13/09/2008
10.22120 0
10.1701
906RD
Birla Ftp Retail Series Au Dividend
14/05/2010
10.00000 10
9 .8
906IG
Birla Ftp Instl Series Au Growth
14/05/2010
10.94000 10.94
10.7212
906ID
Birla Ftp Instl Series Au Dividend
14/05/2010
10.00000 10
9 .8
910IG
Birla Ftp Instl Series Ay Growth
03/07/2010
11.02690 0
10.8064
06/09/2010
10.21990 0
10.1688
06/01/2011
11.92750 11.9275
11.8082
06/01/2011
10.00000 10
9 .9
16/11/2010
11.45240 11.4524
11.3951
07/07/2009
10.96060 0
10.6318
07/07/2009
10.00000 0
9 .7
853G
890G
890D
877G
857G
857D
Birla Fixed Term Plan-quarterly Series 17growth Birl Birlaa Sun Sun Life Life Quar Quarte terl rly y Inte Interv rval al FundFundseries 5- Growth Birl Birlaa Sun Sun Life Life Quar Quarte terl rly y Inte Interv rval al FundFundseries 5-dividend Birla Sun Life Interval Income Fund-retailmonthly Plan-series I-growth Birla Sun Life Fixed Term Plan-instl-series X Dividend Birla Sun Life Fixed Term Plan-instl- Series X Dividend
906RG
Birla Ftp Retail Series Au Growth
14/05/2010
10.92120 10.9212
10.7028
893IG
Birla Ftp Instl Series Aj – Growth
28/04/2011
11.15270 0
10.9296
AAF Scheme Code
881G
882D
882G
883RG
861G
862G
501AP
83AP
8 62D
Scheme Name
NAV Date
Birl Bi rlaa Su Sun n Li Life fe Fi Fixed xed Te Term rm Pl Plan an -r -ret etai aillseries Ae- Growth Birla Sun Life Fixed Term Plan -instl-series Ae- Dividend Birla Sun Life Fixed Term Plan -instl-series Ae- Growth Birla Bir la Sun Lif Lifee Qua Quarte rterly rly Int Interv erval al Fund Series 1-growth Birl Bi rlaa Fi Fixe xed d Te Term rm Pl Planan-re reta tail il-s -ser erie iess Aa Aa-growth Birlaa Sun Life Fixed Term Plan-instl-ser Birl Plan-instl-series ies Aa-growth Birrla Bi
Sun
Life Li fe
Cassh Ca
Plus Pl us-d -diisc sciipl pliine
Advantage Fund Birla Sun Life Short Term Fund-discipline Advantage Fund
NAV
Subscription
Redemption
(Rs.)
Price
Price
20/04/2010
11.24210 0
10.7924
20/04/2010
10.00000 0
9.6
20/04/2010
11.29080 0
10.8392
02/06/2010
11.31200 11.312
11.1989
26/08/2009
10.89870 0
10.4628
26/08/2010
10.94290 0
10.5052
26/06/2012
11.05340 11.0534
11.0534
24/06/2012
11.21610 11.2161
11.1881
10.00000 0
9.6
Birla Sun Life Fixed Term Plan-instl-series 26/08/2009
Aa-dividend
878G
883RD
861D
884RD
884RG
601D
601G
603D
603G
602D
602G
3 31A P
Birl Bi rlaa Su Sun n Li Life fe In Inte terv rval al In Inco come me Fu Fund nd--
16/10/2010
11.42830 11.4283
11.3712
02/06/2010
10.00000 10
9.9
26/08/2009
10.00000 0
9.6
27/11/2010
10.00000 10
9.9
27/11/2010
11.50310 11.5031
11.3881
24/06/2012
33.65690 33.6569
33.6569
24/06/2012
33.65690 33.6569
33.6569
24/06/2012
20.87820 20.8782
20.8782
24/06/2012
20.87820 20.8782
20.8782
24/06/2012
28.11260 28.1126
28.1126
24/06/2012
28.11260 28.1126
28.1126
Birla Su Sun Li Life Sa Savings Fu Fund - Discipline 24/06/2012
11.10690 11.1069
11.1069
institutional-monthly Plan-series I-growth Birla Bir la Sun Lif Lifee Qua Quarte rterly rly Int Interv erval al Fund Series 1-dividend Birl Bi rlaa Fi Fixe xed d Te Term rm Pl Planan-re reta tail il-s -ser erie iess Aa Aa-dividend Birla Bir la Sun Lif Lifee Qua Quarte rterly rly Int Interv erval al Fund Series 2-dividend Birla Bir la Sun Lif Lifee Qua Quarte rterly rly Int Interv erval al Fund Series 2 –growth Birl Bi rlaa Sun Li Life fe As Asse sett Al Allo loca cati tion on Fu Fund nd Aggressive Plan – Dividend Birl Bi rlaa Sun Li Life fe As Asse sett Al Allo loca cati tion on Fu Fund nd Aggressive Plan – Growth Birl Bi rlaa Sun Li Life fe As Asse sett Al Allo loca cati tion on Fu Fund nd Conservative Plan – Dividend Birl Bi rlaa Sun Li Life fe As Asse sett Al Allo loca cati tion on Fu Fund nd Conservative Plan – Growth Birl Bi rlaa Sun Li Life fe As Asse sett Al Allo loca cati tion on Fu Fund nd Moderate Plan – Dividend Birl Bi rlaa Sun Li Life fe As Asse sett Al Allo loca cati tion on Fu Fund nd Moderate Plan – Growth
Advantage Plan
LAYOUT OF THE FACILITY: •
Mobile Investment facility: Birla Sun Life Mutual Fund (BSLMF) is offering a facility
to its customers for management of their portfolio investments on the move via their mobile mob ile pho phones nes.. BSLMF BSLMF has launche launched d a new platfo platform rm called called “Mobil “Mobilee Invest Investmen mentt Manager” in partnership with MCHEK India Payment Systems Pvt. Ltd (mChek). This service will be available to existing Birla Sun Life customers and can be used for accessing portfolio information, making additional purchases, registering for SIPs and also for switches and redemptions. •
Online investment facility: Birla Sun life Mutual Fund introduces the online investment
facility. This would help to invest your funds through “Click of a Mouse”. The Step by Step demo for investing online is available to guide to invest.
•
Dividend sweep facility: Birla Sun Life Mutual Fund has announced the introduction of
Dividend Sweep Facility. Under the facility, one can opt for switching the dividend earned under Open ended Debt Schemes into any other Open Ended Equity or Balanced Scheme of the fund. •
Systematic investment plan facility: SIP allows investors to invest small amounts of
money in schemes of Birla Sun Life Mutual Fund on a regular basis •
Systematic transfer plan facility: STP allows the Investors to invest by transfer of a
fixed amount from any of the following schemes to any open ended scheme of Birla Sun Life Mutual Fund. Since the amount is fixed per month the investor gets the benefit of Rupee Cost Averaging. •
System emat atic ic With Withdr draw awal al Plan Plan (SWP (SWP)) is a Systema Systematic tic withdra withdrawal wal plan facilit facility: y: A Syst financial plan that allows an investor to withdraw money from an existing mutual fund portfolio at predetermined intervals
•
Electronic clearance system facility: Our Electronic Clearance System (ECS) is one of
our many initiatives of making financial planning a simple and hassle-free undertaking for you.
QUALITY CONTROL: BSLAMC follows a long term approach to investment, which is based on identifying companies that have good credit-worthiness & are fundamentally strong. It places emphasis on quality of management & risk control. This is done through extensive analysis that includes factory visits & field research. It has one of the largest team of research analysis in the industry.
PRESENT AND FUTURE OF THE COMPANY: 1) Birl Birlaa sun sun life life asse assett mana manage geme ment nt compa company ny ltd ltd join jointt ventu venture re with with Adit Aditya ya Birl Birlaa grou group p currently they are in 6th position in a financial industry in India.
2)
Birla Birla Sun Life Mutual Fund Fund follows follows a conservative conservative long-term long-term approach approach to investment investment.. Recently it crossed AUM of Rs. 10,000 cores.100% growths in the last 6 years.
3)
Number Numberss of foreign foreign AMC’s AMC’s are in the queue queue to enter the Indian Indian market marketss like Fideli Fidelity ty Investments, US based, with over US$1trillionassets under management worldwide.
4) Our Our savi saving ng rate rate is over 23%, highes highestt in the the worl world. d. Only Only canal canaliz izin ing g thes thesee savi saving ngss in mutual funds sector is required. 5) In future future they want want to introduce introduce more more number number of open ended ended and close close ended ended Schemes to become competitive in the market and to increase there market Share. 6) December December 2007, Indian Indian mutual mutual fund fund industry industry reached reached Rs 1, 50,537 50,537 7) It is estim estimate ated d that that by 2010 March-en March-end, d, the total total assets assets of all Schedul Scheduled ed commerci commercial al banks should be Rs 40, 90,000 cores. 8) The annual composi composite te rate of growt growth h is expected expected 13.4% during during the Rest Rest of the decade. decade. 9) In the last last 5 years years we have have seen seen annual growth growth rate of 9%. 10) Acco Accord rdin ing g to the the curr current ent growth growth rate rate,, by year year 201 2010, 0, mu mutu tual al fund fund As Asse sets ts will will be double.10. End of 2007- Mutual fund industry had assets under management of Rs.1, 50,537 cores.
4) MARK MARKET ETIN ING G AREA OF OPERATION: BSLAMC is working in mutual funds means their main area of operation is mutual fund. A mutual fund is professionally managed type of collective investment scheme that pools money from many investors typically in investment securities.
MAJOR COMPETITORS: 1. Reli Relian ance ce mu mutu tual al fund fund
2. ICIC ICICII mut mutua uall fun fund d 3. UTI UTI mut mutua uall fun fund d 4. HDFC HDFC mu mutu tual al fund fund
MARKET SHARE: Birla sun life asset Management Company having 10.33% market Share.
Market share of asset management companies
OUTLETS IN COUNTRY: Today BSLAMC is present in 152 locations, including 32 branches. They have branches in major cities like Mumbai, Nagpur, Calcutta, etc.
COMPANY STRATEGY: 1. Pric Pricin ing g str strat ateg egy: y:-- In the mutual fund pricing strategy is very simple & easy to understand. In
the case of mutual fund there are two funds are available open ended & close ended. The cost of this two type of fund is fixed open ended –Rs.5000 & close ended fund –Rs.3000. in the case of BSLAMC they have fixed Pricing strategies. They provide installment facility also. 2. Mark Market etin ing g stra strate tegy gy:: -BSLAMC is one of the reputed companies in asset management only
because of there marketing strategy they reached at this level. There marketing strategy is
very simple o understand. BSLAMC is joint venture with ADITY BIRLA GROUP. They used this tie up links for there marketing strategy. 3. Prom Promot otio ion n stra strate tegy gy;;- They They give give ther there e adve advert rtis isem emen ents ts on T.V. T.V. ,hor ,hordi ding ng &banner. They use their links for this purpose.
STRENGTHS OF THE ORGANISATION ORGANISATION: Excellent is next to nothing……and here at Birla everybody tries their best to offer excellent services through its offerings maintaining the Birla culture which includes: a) Controlled and low cost service culture:
Birla is there to serve its client at the
minimu minimum m pos possib sible le cost. cost. It control controlss its its cost cost by variou variouss cost cost cuttin cutting g techni technique quess and maximization of avoidable cost. b) Large volume processing capability: Being the largest financial service provider in the country, it has the unique distinction of operating its activities on a large scale which benefits all the parties cordially. c)
tries it best to to Adherence to strict time schedule : Birla knows that time is money and tries finish the task with in the stipulated time schedule.
d) Expertise in coordinating multi-location responses: Birla has got a wide network and hence one can find its branches at most of the places in India. Thus it enjoys its presence everywhere and coordinates among itself in solving the queries and in responding to any situation. e) Expertise in managing independent entities such as banks, post- office etc:
The
work work cultu culture re of Birl Birlaa and the the ethi ethics cs foll follow owed ed insi inside de Birl Birlaa make makess its its work workfo forc rcee compatible with everybody. f) Pooling of group resources : Birla group consist of eight subsidiaries, so it can easily pool up its resources for accomplishment of its goals, whenever needed. The groups can help each other whenever there are peaks and lows, and even in the case when they have huge targets just we saw a few year back, Tata group pooling its resources to acquire corus.
OTHERS: KEY PERSONNELS:
SENIOR MANANGEMNET:
Mr. A Bal Subramanian, Chief Executive Officer – BSLAMC, Mr. Navin Tewari, Head-Sales and Custom Customer er Engagem Engagement ent – BSLAMC, BSLAMC, Mr. Sarb Sarb Preet Preet Singh, Singh, Head Head Instit Instituti utional onal Sales – BSLAMC, Mr. Ashok Suvarna, COO – BSLAMC, Mr. Manoj Kumar Gandhi, Head Finance and Strate Strategy gy – BSLAMC, BSLAMC, Ms. Rama Rama Vasant Vasanthar haraja ajan n - Head-Co Head-Compl mplian iance ce & Risk Risk Managem Management ent – BSLAMC, Mr. Rajesh Srivastava - Head Human Resources, BSLAMC Mr. Rahul Parikh, Head Busi Busine ness ss Devel Develop opme ment nt – BSLA BSLAMC MC,, Mr. Mr. Rahul Rahul Pari Parikh kh,, Head Head Busi Busine ness ss Devel Developm opmen entt – BSLAMC, BSLAMC, Ms. Molly Molly Kapoor, Head Customer Customer Service – BSLAMC BSLAMC Mr. Bhavdeep Bhatt, Head Products – BSLAMC Mr. Rajiv Joshi, Head - Legal, Compliance and Secretarial – BSLAMC, Mr. Thrivikram Iyer, Head Risk Management – BSLAMC Mr. Maneesh Dangi - Head - Fixed Income, Mr. Mahesh Patil - Head Equity - Domestic Assets Assets Mr. Satyabrata Satyabrata Mohanty - Head Mixed Assets, Mr. Ajay Argal - Head Equity – Offshore
BOARD OF DIRECTORS: Birla Sun Life Trustee Company Pvt Ltd:
Mr. Praful Prafulll Anubhai Anubhai (Indep (Independe endent nt Direct Director) or) 72 years years / B.Com, B.Com, B.Sc. B.Sc. (Econ.) (Econ.) from from London London School of Economics Mr. Gurcharan Das (Independent Director) 66 years / Graduated with honors from Harvard University and later attended Harvard Business School (AMP)
Dr. V.Arunachalam (Independent Director) 66 years / Graduated with honors from Harvard University and later attended Harvard Business School (AMP) Mr. Suresh Talwar (Associate Director) 72 years / B.Com., LL.B., S olicitor & Advocate Mr. B.N.Puranmalka (Associate Director) 74 years / F.C.A., F.C.S., LL.B Birla Sun Life Asset Management Company Ltd:
Mr. Kumar Mangalam Birla Birla (Associate Director & Chairman) 43 years / C.A., M.B.A. (London (London Business School) Mr. Ajay Srinivasan Srinivasan (Associat (Associatee Director) Director) 46 years / B.A. Economics Economics (Hons.), PGDM, IIM -Ahmedabad Mr. Ashok Goenka (Independent (Independent Director) Director) 79 years / B.A. (Hons), (Hons), M.B.A.(Wharton M.B.A.(Wharton School, School, University Of Pennsylvania, USA) Mr. S.S. Raman (Independent Director) 73 years / B.Com (Hons.), C.A., Post Graduate in Business Management Mr. Donald Stewart (Associate Director) 63 years / FIA, FCIA Mr. N.N.Ja N.N.Jambu mbusar saria ia (Indep (Independe endent nt Direct Director or 76 years years / M. Com, Com, Fellow Fellow of the Insti Institut tutee of Actuaries, London. F.A.S.I. (Fellow of the Actuarial Society of India) Mr. N.C.Singhal (Independent Director) 73 years / Postgraduate in Economics, Statistics and Administration. He has received professional education from institutes like IIM (Ahmedabad, Calcutta), IIT Kanpur, and ISI Calcutta Mr. Dikran Ohannessian (Associate Director) 57 yrs / Fellow of the Society of Actuaries and the Canadian Institute of Actuaries. Mr. Sandeep Asthana (Associate Director) 43 years / B. Tech from IIT Mumbai, MBA from IIM Lucknow. Mr. Ravindra Chandra Bhargava (Independent Director) 76 years / Msc, MA (Dev. Economics)
Mr. R Vaidyanathan (Independent Director) 58 years / M. Stat, PhD in Finance Mr. Pankaj Razdan (Associate Director) 42 years / B.Tech (Electronics), B.SC (Electronics)
AWARDS: ICRA Mutual Fund Awards 2010 - 2011
BSL Government Security Fund - Long Term won 7 Staraward in the Open ended Gilt
category for its one year performance
BSL Dynamic Bond Fund - Retail won 5 Star award in the Open ended Debt short term
category for its 3 year performance
BSL MNC Fund won two 5 star awards for its one year and three year performance
respectively in the Open ended diversified Equity defensive category
BSL Dividend Yield Plus won 5 star awards for its one year performance in the Open
ended diversified Equity aggresive category and another 5 star award for its three year performance in the Open ended diversified Equity defensive category. Outlook Money Awards 2010 - 2011
Best Debt Fund House
Best Fund House - Runner's up
MUTUAL FUNDS: WHAT ARE MUTUAL FUNDS? A mu mutu tual al fund fund is a mana manage ged d grou group p of owne owned d secu securi riti ties es of sever several al corpor corporat atio ions ns.. Th Thes esee corporations receive dividends on the shares that they hold and realize capital gains or losses on their securities traded. Investors purchase shares in the mutual fund as if it was an individual security.
After paying operating costs, the earnings (dividends, capital gains or losses) of the mutual fund are distributed to the investors, in proportion to the amount of money invested. Investors hope that a loss on one holding will be made up by a gain on another. Heeding the adage "Don't put all your eggs in one basket" the holders of mutual fund shares are able collectively to gain the advant advantage age by divers diversify ifying ing their their invest investmen ments ts,, which which might might be beyond beyond their their financ financial ial means means individually. A mutual fund may be either an open-end or a closed-end fund. An open-end mutual fund does not have a set number of shares; it may be considered as a fluid capital stock. The number of shares changes as investors buys or sell their shares. Investors are able to buy and sell their shares of the company at any time for a market price. However the open-end market price is influenced greatly by the fund managers. On the other hand, closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates with the market. But with close-end funds, the fund manager has less influence because the price of the underlining owned securities has greater influence.
FOUR PHASES OF MUTUAL FUND INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust India, at the initiative of the Government of India and Reserve Bank. The history of mutual funds in India can be broadly divided into four distinct phases: FIRST PHASE – 1964-87: Unit Trust of India (UTI) was established on 1963 by an Act of
Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the reserve bank of India. In 1987 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 Crores of assets under management. SECOND SECOND PHASE – 1987-1993 (ENTRY OF PUBLIC SECTOR SECTOR FUNDS) FUNDS) : 1987 marked the
entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund
was the first non- UTI Mutual Fund established in June 1987 followed by the following. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores. With the the entr entry y of THIRD PHASE-1993-2003(ENTRY OF PRIVATE SECTOR FUNDS) : With private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 cores. The Unit Trust of India with Rs.44, 541 Crores of assets under management was way ahead of other mutual funds. FOURTH PHASE-SINCE FEBRURARY 2003 : In February 2003, following the repeal of the
Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 Crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
HISTORY OF MUTUAL FUNDS History of Mutual Funds has evolved over the years and it is sure to appear as something very interesting for all the investors of the world. In present world, mutual funds have become a main form of investment because of its diversified and liquid features. Not only in the developed world, but in the developing countries also different types of mutual funds are gaining popularity very fast in a tremendous way. But, there was a time when the concept of Mutual Funds was not present in the economy. There is an ambiguity about the fact that when and where the Mutual Fund Concept was introd introduce uced d for the first first time. time. Accord According ing to som somee histor historian ians, s, the mutual mutual funds funds were were first first
introduced in Netherlands in 1822. But according to some other belief, the idea of Mutual Fund first came from a Dutch Merchant ling back in 1774. In 1822, that idea was further developed. In 1822, the concept of Investment Diversification was properly incorporated in the mutual funds. In fact, the Investment Diversification is the main attraction of mutual funds as the small investors are also able to allocate their little Funds in a diversified way to lower Risks. After After 1822 in Nether Netherlan lands, ds, the Mutual Funds Concept Concept came in Switze Switzerla rland nd in 1849 and thereafter in Scotland in the 1880s. After being popular in Great Britain and France, Mutual fund concept traveled to U.S.A in the 1890s. In 1920s and 1930s, the Mutual Fund popularity reached a new high. There was record investment done in mutual funds. But, before 1920s, the mutual funds were not like the modern day mutual funds. The modern day mutual funds came into existence in 1924, in Boston. Massachusetts Investors Trust introduced the Modern Mutual Funds and the funds were available from 1928. At present this Massachusett Massachusettss Investors Investors Trust is known as MFS Investment Management Management Company. Company. After After the the glor glorio ious us year year of 192 1928, 8, Mu Mutu tual al fund fund idea ideass expa expande nded d to diff differ eren entt leve levels ls and and diff differ eren entt regulations came for well functioning of the funds. Still today, the funds are evolving and improving in order to offer people much wider choices and better advantages for fulfillment of their various investment needs a nd financial objectives.
BRIEF DESCRIPTION OF MUTUAL FUNDS: Mutual Fund is a mechanism for pooling the resources by issuing units to the investors and investing in securities in accordance with objective as disclosed in the offer document. Mutual funds are money-managing institutions set up to professionally invest the money pooled in from the public. These schemes are managed by Asset Management Companies (AMC), which are sponsored by different financial institutions or companies. Each Each unit unit of thes thesee sche scheme mess refl reflec ects ts the the shar sharee of investor of investor in in the the resp respect ectiv ivee fund fund and and its its appreciation is judged by the Net Asset Value (NAV) of the scheme. The NAV is directly linked
to the the bull bullis ish h and bear bearis ish h tren trends ds of the the mark market etss as the the poo poole led d mo mone ney y is inve invest sted ed eith either er inequity shares or in debent debenture uress or treasu treasury ry bills. bills. Indian Indian Mutual Mutual Funds Funds unveils unveils this multi multi-dimensional avenue, with its intricacies, in a fashionable manner as mutual funds up-hold ample scope of generating decent returns by some thoughtful investment investment.. The flow chart below describes broadly the working of a mutual fund: fund:
ORGANISATION OF MUTUAL FUND: There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:
TYPES OF MUTUAL FUNDS: Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry. 1. By St Structur ture
a. Open Open - End Ended ed Sche Scheme mess b. Close - Ended Schemes c. Inte Interv rval al Sche Scheme mess 2. By Invest Investme ment nt Ob Obje jecti ctive ve
a. Grow Growtth Sch Schem emes es b. Income Schemes c. Bala Balanc nced ed Sch Schem emes es d. Mo Mone ney y Mark Market et Sch Schem emes es 3. Ot Othe herr Sche Scheme mess
a. Tax Tax Sav Savin ing g Sch Schem emes es b. Special Schemes i. Index ndex Sche Scheme mess ii. Sector Sector Speci Specific fic Schem Schemes es
Advantages & Disadvantages of Mutual Fund The advantages of investing in a Mutual Fund are:
1. Professional Management 2. Diversification 3. Convenient Administration 4. Return Potential 5. Low Costs 6. Liquidity 7. Transparency 8. Flexibility 9. Choice of schemes 10. Tax benefits 11. Well regulated
The disadvantages of investing in a Mutual Fund are:
1. Cost control not in the hands of an investor 2. Mutual Funds Have Hidden Fees 3. Mutual Funds Have High Sales Charges 4. Mutual Funds and Poor Trade Execution 5. All Mutual Funds Have High Capital Gains Distributions.
6. Mutual Funds Lack Liquidity
INTRODUCTION INTRODUCTION OF TOPIC: LIQUID FUND There are two categories of funds that have caught the imagination of investors these days -liquid and liquid-plus funds. Though, at present, most of the money in these funds comes from institutional investors, the retail investor is slowly beginning to realize their benefits. These funds can prove to be useful for the retail investor to manage their short-term surpluses. Liquid funds are used primarily as an alternative to short-term fix deposits. Liquid funds invest with minimal risk (like money market funds). Most funds have hav e a lock-in period of a maximum of three three days to protec protectt agains againstt proced procedura urall (prima (primaril rily y bankin banking) g) glitch glitches, es, and offer offer redemp redemptio tion n proceeds within 24 hours. The minimum investment size in a liquid fund varies from Rs. 25,000 25 ,000 to Rs 1 lakh. Liquid Liquid funds funds invest invest in sho shortrt-ter term m debt debt instru instrumen ments ts with with maturi maturitie tiess of less less than than one year. year. Therefore, they invest in money market instruments, short-term corporate deposits and treasury. The maturity of instruments held is between three and six months. A liquid fund provides good liquidity, low interest rate risk and the prevailing yield in the market. Liquid funds have the restriction that they can only have 10 per cent or less mark-to-market component, indicating a lower interest rate risk. Liquid funds have an exit load if the investor redeems before the lock-in period. But in most cases, the lock-in period is quite low - varying from 7 to 10 days. Liquid funds score over short term fix deposits. Banks give a fixed rate in the range 5%-5.5% p.a. for a term of 15-30 days. Retu Return rnss from from depo deposi sits ts are are taxa taxabl blee depen dependi ding ng on the the tax tax brack bracket et of the the inves investo tor, r, whic which h considerably pulls down the actual return. Dividends from liquid funds are tax-free in the hands of investor, which is why they are more attractive than deposits. The sole disadvantage liquid funds are that investors cannot take the advantage of higher returns being offered by long-term instruments.
In the last one year, liquid funds have returned between 7.7 per cent and 8.85 per cent. Liquid plus funds, on the other hand, have slightly higher returns between 8.4 and 11.29 per cent. Obviously, that makes them a better choice as against money earning a dismal 3-3.5 per cent in your savings account. Let us look at these two options in detail. 1.
LIQUID FUNDS: These funds invest in short-term debt instruments with maturities of less
than one year. A liquid fund would normally provide good liquidity, low interest rate risk and the prevailing yield in the market. Therefore, they invest in money market instruments, short-term corporate deposits and treasury. The maturity of instruments held is between three and six months. Liquid funds have the restriction that they can only have 10 per cent or less mark-tomarket component, indicating a lower interest rate risk. As far as costs go, they have an exit load, if the investor redeems before the lock-in period. But these periods are rather low -- in most cases, around 7-10 days. The only disadvantage liquid funds has is that investors cannot take the advantage of higher returns being offered by long-term instruments. But the biggest benefit is that though the returns are lower, the risk is nominal, making it an ideal instrument for parking short-term funds. 2. LIQUID-PLUS FUNDS : These funds were launched to cater to those with a stomach for
slightly higher risk, and as a result higher returns. A typical liquid-plus fund will have similar investments like a liquid fund, but around 30 per cent of the corpus is invested in instruments with longer maturity period. They do not have any restriction on the mark-to-market component (liquid funds can have only up to 10 per cent) and there is no lock-in period for the liquid-plus funds category. Also, liquid plus funds are a hit as they are more tax-efficient. The dividend distribution tax works out to 14.16 per cent as against 28.33 per cent for liquid funds. As it can been seen, the positioning of these two categories is quite different. That is, they provide an option between short-term liquid funds and other long-term debt funds. They are, hence, attractive for those who want a slightly higher return without going all the way with only higher tenure investment options.
Though the performance of these two funds is similar, in a rising interest rate regime, long-term maturity papers are observed to be riskier and their value reduces. This leads to loss of returns of liquid-plus funds. In the recent times, tough market conditions and the fear in investors have hit the assets under management of both these funds. Especially, corporate investors have been cautious. This has led to a negative impact of the expense ratio on the returns. As the tax treatment of liquid-plus funds is better, they would still outperform, considering the net-of-tax parameter. This is why retail investors can consider this as a more sensible option, albeit at higher risk, to invest their money in the short term
DIFFERENCE DIFFERENCE BETWEEN LIQUID FUND AND LIQUID PLUS FUND •
The main difference between pure liquid and liquid plus funds is the tenure of the securities held.
•
The instruments held by liquid plus funds have a longer tenure than liquid funds.
•
In terms of tax implications, there is a dividend distribution tax of 28.33% on liquid funds, whereas 14.16% is levied on liquid plus funds (in case of individual investors).
ADVANTAGES OF LIQUID FUND •
A lucrative means of parking money for the short term and earning reasonable returns is to invest in liquid funds.
•
Liquid funds have no entry and exit loads in most cases.
•
Liquidation is easy.
•
Investors can liquidate at an NAV (net asset value) which they consider to be lucrative, as against a normal mutual fund where an NAV just has a notional value.
WHY TO INVEST IN A LIQUID FUND?
The main reason for investing in Liquid funds should be Liquidity factor; these funds are most liquid and least volatile... So if you need to have liquidity in your portfolio, always invest some money in Liquid funds, any extra money lying in your Saving Account above your 1 month requirement should be in Liquid fund
.
TAX EFFICIENCY: Dividends from liquid funds are tax-free in the hands of investor, which is why they are more attractive than deposits. Returns from deposits are taxable depending on the tax bracket of the investor, which considerably pulls down the actual return (unless of course the interest earned does not exceed the 80 L limit). Let's take an example of two investors `A' and `B' who invest in fixed deposit and Liquid fund respectively. Both are in the highest tax bracket and invest for a tenure of 30 days.`A' makes a deposit of Rs 500,000 in HDFC Bank at the rate of 5% p.a. for a tenure of 30 days and `B' invests in `Birla sun life (I) Liquid fund' for the same period and amount. A's investment
HDFC Bank
Amount (Rs)
Investment
500,000
*Return (y)
2 ,0 0 0
Tax paid (30.6%) (z)
6 12
Actual return (y-z)
1 ,38 8
Return Return on Investmen Investmentt (30 days) days) 0.28% (Return is considered @ of 5% p.a. for 30 days) B's investment BSL Liquid Liquid Fund Fund (Divi (Dividend dend)) Amount Amount (Rs) (Rs)
Investment
500,000
*Return (y)
2 ,0 0 0
Tax paid (30.6%) (z)
-
Actual return (y-z)
2 ,00 0
Return Return on Investmen Investmentt (30 days) days) 0.40% (*Return is considered on the dividend declared in last 30 days)
The above example shows that B gains more than A when tax is taken into consideration.
LIQUIDITY: Deposits marginally score over liquid funds as far as liquidity is concerned. In bank deposits the investor's investor's bank account is credited credited as soon as his FDR (fixed (fixed deposit deposit receipt) receipt) is surrendered surrendered to the bank. However, in case of liquid funds the investor has to give a redemption request to the fund within the cut off time to receive that days NAV and the Cheque is issued to him on the next working day. However, some funds give the facility of crediting the investor's bank account e.g. BSL gives this facility to the HDFC bank b ank account holders. Factoring in all these factors, liquid funds do emerge as a better option as compared to fixed deposits. However, while investing money in these funds investors need to carefully evaluate the fund's performance. There is a possibility that liquid funds may not deliver in terms of expected returns owing to market factors. Therefore, if you have Rs 100 to invest, you should probably split the money between a liquid fund and a fixed deposit. A recent study conducted by Crisil Fund Services has pronounced liquid funds, an attractive alternative to retail investors investors for parking funds lying idle in their their savings bank accounts. Reason: they offer higher post-tax returns, are liquid and provide a reasonable degree of safety in terms of the principal invested. Over the last 5 years, liquid funds (Crisil Fund Rank 1 index for liquid funds) have given an annualized post-tax return of 5.78% as compared to 2.5% given by a savings bank account. Despite this disparity in returns, a majority of Indians continue to park a large amount of funds in savings bank accounts. As of March 31, 2010, money in such accounts in scheduled commercial banks stood at Rs 11.36 trillion. According to Mukesh Agarwal, senior director, Crisil Research: "Beyond returns, liquid funds also have advantages in terms of liquidity, liquidity, safety and portability. portability. They can be redeemed redeemed within within 24 hours and have no exit load. Further, liquid funds invest in securities with a maximum
maturity of 91 days, which cuts down the credit risk. Most liquid fund schemes are also highly rate rated d (P1+ (P1+f) f),, sign signif ifyi ying ng very very stro strong ng prot protect ectio ion n again against st loss losses es from from cred credit it defa defaul ults ts." ."
Within liquid funds the dividend option is more tax-efficient. This option would be more suitable for investors who fall within the 20 and 30% tax brackets, as it attracts a lower dividend distribut distribution ion tax of 12.5%. Post tax deductions, deductions, liquid funds yield better better returns returns as compared compared to savings accounts and fixed deposits, wherein the interest earned would be taxed based on an individual's tax slab Tarun Bhatia, director, capital markets, Crisil Research, added : "It is important to note that liquid funds are not totally risk-free and an investor must carry out basic checks before investing. Factors such as the fund house and the scheme vintage, overall assets under management (AUM) of the mutual fund, consistent consistent performance performance over a longer period and comparison comparison of the scheme with appropriate benchmarks can be looked at for selecting the right fund
BIRLA SUN LIFE LIQUID FUNDS:
Asset Date: 25-Jun-2012 Scheme Name
1m % 3m %
1y %
3y %
Fund Size (Rs. Cr)
Birla Sun Life Cash Plus Inst Premium (Div-D)
9.0
9.2
7.9
6 .9
6,801
Birla Sun Life Cash Plus Inst Premium (G)
8.6
8.8
7.8
6 .7
6,801
Birla Sun Life Cash Plus Inst (Div-D)
8.0
8.6
7.7
6 .4
6,801
Birla Sun Life Cash Plus Inst Premium (Div-W)
6.5
8.1
7.6
6 .7
6,801
Birla Sun Life Cash Plus Inst (G)
8.2
8.6
7.4
6 .3
6,801
Birla Sun Life Cash Plus Retail (Div-D)
8.3
8.7
7.3
5 .9
6,801
Birla Sun Life Cash Plus Inst (Div-W)
6.3
7.9
7.3
6 .3
6,801
Birla Sun Life Cash Plus Retail (G)
8.1
8.4
7.2
6 .0
6,801
Birla Sun Life Cash Plus (Discpln Advats Plan)
7.8
8.0
6.8
NA
6,801
TOP LIQUID FUNDS: Ranked on the basis of their performance (%) as on Jul 22, 2011. Click on 'Time Period' to rank funds on a particular period of your choice
Performance RANK
SCHEME NAME
DATE
1month
3month
6month
1Yr
6Yrs
1
Escorts Liquid Plan - Growth
Jul 22, 2011
0.82
2.52
5.04
9.34
7.89
2
Sahara Liquid Fund - VP - Growth
Jul 24, 2011
0.74
2.22
4.54
8.06
7.25
3
SBI Magnum Insta Cash Fund Liquid Floater - Growth
Jul 24, 2011
0.71
2.17
4.33
8.02
6.63
4
Sahara Liquid Fund - Fixed Pricing Option - Growth
Jul 24, 2011
0.74
2.20
4.50
8.01
7.16
5
IDFC Liquid Fund - Plan A - Growth
Jul 24, 2011
0.75
2.16
4.57
7.94
6.16
6
JM High Liquidity - Growth
Jul 24, 2011
0.73
2.18
4.28
7.90
6.58
7
Kotak Floater - ST - Growth
Jul 24, 2011
0.72
2.17
4.36
7.87
6.37
8
Quantum Liquid Fund - Growth
Jul 24, 2011
0.69
2.15
4.24
7.84
6.64
9
IDBI Liquid Fund - Growth
Jul 24, 2011
0.72
2.15
4.23
7.78
N/A
10
Baroda Pioneer Liquid Fund Growth
Jul 24, 2011
0.73
2.17
4.25
7.78
6.16
11
Reliance Liquidity Fund - Growth
Jul 24, 2011
0.72
2.16
4.29
7.75
6.71
12
IDFC Liquid Fund - Plan D - Growth
Jul 24, 2011
0.73
2.11
4.47
7.75
N/A
13
PRINCIPAL Cash Mgmt Fund Growth
Jul 24, 2011
0.72
2.15
4.25
7.71
6.51
14
HDFC Cash Mgmt Fund - Savings Plan - Growth
Jul 24, 2011
0.72
2.14
4.26
7.68
6.63
15
SBI Magnum Insta Cash - Cash Plan
Jul 24, 2011
0.71
2.11
4.15
7.66
6.34
16
Daiwa Liquid Fund - Ret - Growth
Jul 24, 2011
0.73
2.17
4.24
7.66
N/A
17
Axis Liquid Fund Fund - Ret - Growth Growth
Jul 24, 2011
0.69
2.08
4.13
7.58
N/A
18
Taurus Liquid Fund - Growth
Jul 24, 2011
0.70
1.94
4.04
7.58
5.74
19
BNP Paribas Overnight Fund Growth
Jul 24, 2011
0.71
2.11
4.17
7.58
6.65
20
DSP BlackRock Liquidity Fund Regular Plan - Growth
Jul 24, 2011
0.70
2.11
4.14
7.56
5.97
21
Tata Money Market Fund - Growth
Jul 24, 2011
0.69
2.10
4.22
7.55
6.39
22
JPMorgan India Liquid Fund - Ret Growth
Jul 24, 2011
0.71
2.09
4.08
7.55
N/A
23
L&T Liquid Fund - Reg - Growth
Jul 24, 2011
0.70
2.09
4.12
7.53
6.22
24
HDFC Liquid Fund - Growth
Jul 24, 2011
0.71
2.13
4.20
7.52
6.41
25
Reliance Liquid Fund - Cash Plan Growth
Jul 24, 2011
0.72
2.17
4.31
7.49
5.10
26
ING Liquid Fund - Growth
Jul 24, 2011
0.69
2.04
4.04
7.45
6.23
27
LIC Nomura MF Liquid Fund Growth
Jul 24, 2011
0.65
1.97
4.01
7.40
6.73
28
Reliance Liquid Fund - TP - Retail Growth
Jul 24, 2011
0.69
2.09
4.17
7.35
6.40
29
Templeton India TMA - Growth
Jul 24, 2011
0.70
2.05
4.04
7.34
6.21
30
Tata Liquid Fund - RIP - Growth
Jul 24, 2011
0.69
2.08
4.08
7.33
6.19
31
AIG India Liquid Liquid Fund - Ret - Growth
Jul 24, 2011
0.67
2.04
4.05
7.31
6.11
32
IDFC Cash Fund - Plan A - Growth
Jul 24, 2011
0.69
2.06
4.05
7.29
6.14
33
DWS Insta Cash Plus Fund - Growth
Jul 24, 2011
0.67
2.02
4.04
7.27
6.39
34
IDFC Liquid Fund - Plan F - Growth
Jul 24, 2011
0.68
1.96
4.16
7.26
N/A
35
Religare Liquid Fund - Regular Growth
Jul 24, 2011
0.66
1.97
3.89
7.25
6.17
36
UTI Money Market - Ret - Growth
Jul 24, 2011
0.68
2.02
4.01
7.25
6.40
37
Peerless Liquid Fund - Ret - Growth
Jul 24, 2011
0.60
1.77
3.80
7.22
N/A
38
Fidelity Cash Fund - Retail - Growth
Jul 24, 2011
0.69
2.02
3.98
7.21
5.84
39
Birla Sun Life Cash Plus - Retail Growth
Jul 24, 2011
0.68
2.08
4.05
7.17
5.96
40
UTI Liquid Fund - Cash Plan Growth
Jul 24, 2011
0.68
2.01
3.96
7.15
6.11
41
DWS Treasury Fund - Cash - Reg Growth
Jul 24, 2011
0.58
1.77
3.83
7.12
N/A
42
Kotak Liquid - Regular - Growth
Jul 24, 2011
0.66
2.00
4.02
7.11
5.96
43
Templeton India TMA Liquid Plan Growth
Jul 24, 2011
0.68
1.99
3.91
7.07
5.95
44
Canara Robeco Liquid - Growth
Jul 24, 2011
0.67
1.98
3.89
7.05
6.22
45
ICICI Prudential Liquid Plan - Growth
Jul 24, 2011
0.66
1.97
3.89
6.95
5.90
46
Birla Sun Life Cash Plus - Retail DAP
Jul 24, 2011
0.65
1.97
3.82
6.78
N/A
47
Edelweiss Liquid Fund - Ret Growth
Jul 24, 2011
0.68
2.01
3.79
6.63
N/A
48
Tata Liquidity Management Fund Growth
Jul 24, 2011
0.59
1.74
3.58
6.55
4.74
49
Bharti AXA Liquid Fund - Reg Growth
Jul 24, 2011
0.65
1.86
3.57
6.55
5.58
50
HSBC Cash Fund - Reg - Growth
Jul 24, 2011
0.60
1.81
3.60
6.53
4.83
51
ICICI Prudential Sweep Plan - Cash Option - Growth
Jul 24, 2011
0.72
2.07
3.65
6.52
5.51
52
HDFC Cash Mgmt Fund - Call Plan Growth
Jul 24, 2011
0.60
1.83
3.40
6.35
5.16
53
Sundaram Money Fund - Growth
Jul 22, 2011
0.60
1.77
3.43
6.22
5.50
54
PRINCIPAL Money Manager Fund PRINCIPAL Growth
Jul 24, 2011
0.56
1.61
3.04
6.14
2.75
55
Mirae Asset Cash Management Fund - Growth
Jul 24, 2011
0.56
1.64
3.07
5.89
N/A
56
Religare Overnight Fund - Growth
Jul 24, 2011
0.55
1.63
3.00
5.84
4.19
57
ICICI Prudential Sweep Plan
Jul 24, 2011
0.66
1.91
3.28
5.71
4.74
58
Mirae Asset Liquid Fund - Reg Growth
Jul 24, 2011
0.53
1.54
2.88
5.43
0.88
59
Pramerica Liquid Fund - Growth
Jul 24, 2011
0.72
2.13
4.26
N/A
N/A
60
Union KBC Liquid Fund - Growth
Jul 24, 2011
0.70
N/A
N/A
N/A
N/A
METHODOLOGY: (a) OBJECTIVES:
The main objective of this project is concerned with the satisfaction level of investors invested in liquid funds.
To generate awareness among various sectors about liquid funds and to know the perception towards it.
To know the preference preference of investors investors while investing with respect to risk, risk, return, return, liquidity, wealth, tax and short term parking of funds.
(b) RESEARCH METHODOLOGY: The population of the study was Gwalior. Here, total 72 respondents were selected to give their responses on in the different question s asked in the questionnaire. The respondents belong to different categories like (chartered accountant, doctors, and businessman). The samples were selected by contacting the individual sample element.
(c) TOOLS: For data analysis: T test (independent sample t test) was used to find out differences in the perception and satisfaction level of different samples. Independent sample t test: Independent sample t-test is a statistical technique that is used to
analyze the mean comparison of two independent groups. In independent samples t-test, when we take two samples from the same population, then the mean of the two samples may be identical. But when samples are taken from two different populations, then the mean of the sample may differ. In this case, independent sample t-test is used to draw conclusions about the means of two populations, and used to tell whether or not they are similar
DATA ANALYSIS: HYPOTHESIS:
Null (H01): The means of the two groups groups (busines (businessma sman n and chartered chartered accountant accountant)) are not significantly different. Alternate: The means of the two groups are significantly different SPSS Output:
1) Following is a sample output of an independent samples T test. We compared the mean satisfaction level for liquid funds between businessman (group-1) and chartered accountant (group-2). Group Statistics Grouping
total dimension1
1.00 2.00
N 12 12
Mean 40.0833 43.1667
Std. Deviation 5.38446 6.80686
Std. Error Mean 1.55436 1.96497
Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-2 is higher than that of the group-1. That is, satisfaction level for liquid fund has, on average, higher in case of chartered accountant than businessman.
Independent Samples Test Leve Levene ne's 's
Test Test
for for Equa Equali lity ty of Variances
t-test for Equality of Means 95% Interval Sig.
total
Equal
F variances 1.577
Sig. .222
assumed Equa Equall vari varian ance ces s
t -1.231
df 22
-1.231
20.893
(2- Mean
Confidence of
the
tailed) .231
Difference -3.08333
Std. Std. Error Error Difference Difference Lower Upper 2.50542 -8.27926 2.11260
.232
-3.08333
2.50542
-8.29528
2.12861
not assumed
Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is not significant. Here, we see that the significance is .222, which is greater than .05. We can assume that the varianc variances es are approxi approximat mately ely equal. equal. Finally, Finally, we see the results results of the Independen Independentt Samples T Test. Based on the results of our Levene's test; T value is -1.231 We have 22 degrees of freedom. Sig. level is .231 i.e. 23.1 %
Therefore we fail to reject the null hypothesis (H 01) and there is no significant difference between the two groups (the significance is greater than .05).Therefore, we can say that there is no signific significant ant differe difference nce between between the satisfac satisfaction tion level level betwee between n busines businessman sman and charter chartered ed accountant invested in liquid funds. HYPOTHESIS:
Null (H02): The means of the two groups (chartered accountant and doctors) are not significantly different. Alternate: The means of the two groups are significantly different
SPSS Output:
2) Following is a sample output of an independent samples T test. We compared the mean satisfaction level for liquid funds between chartered accountant (group-2) and doctors (group-3)
Group Statistics grouping
total dimension1
2.00 3.00
N 12 12
Mean 43.1667 32.5833
Std. Deviation 6.80686 2.53909
Std. Error Mean 1.96497 .73297
Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-2 is higher than that of the group-3. That is, satisfaction level for liquid fund has, on average, higher in case of chartered accountant than doctors. Independent Samples Test Leve Levene ne's 's
Test Test
for for Equa Equali lity ty of Variances
t-test for Equality of Means 95% Interval Sig.
total
Equal
F Sig. variances 12.863 .002
assumed Equa Equall vari varian ance ces s
t 5.046
df 22
tailed) .000
5.046
14.003 .000
(2- Mean
Confidence of
Std. Std.
Difference 10.58333
Erro Error r Difference Difference Lower Upper 2.09723 6.23395 14.93271
10.58333
2.09723
6.08532
15.08135
not assumed
Seco Secondl ndly, y, we see see the Leven Levene's e's Test Test for Equal Equality ity of Varia Variance nces. s. Here Here the the Leven Levene's e's test test is significant. Here, we see that the significance is .002, which is not greater than .05. We can assum assumee that that the varia variance ncess are are not not approx approxim imate ately ly equal equal.Fi .Fina nally lly;; we see see the result resultss of the Independent Samples T Test. Based on the results of our Levene's test;
T value is 5.046
the
We have 14.003 degrees of freedom. Sig. level is .000 i.e. 0 %
Therefore Therefore we reject the null hypothesis hypothesis (H 02) and there is significant significant difference between the two groups (the significance is not greater than .05). Therefore, we can say that there is significant difference between the satisfaction level between doctors and chartered accountant invested in liquid funds. HYPOTHESIS:
Null Null (H03): The means means of the two groups groups (businessma (businessman n and doctors) doctors) are not signific significantl antly y different. Alternate: The means of the two groups are significantly different SPSS Output:
3) Following is a sample output of an independent samples T test. We compared the mean satisfaction level for liquid funds between businessman (group-1) and doctors (group-3) Group Statistics grouping
total dimension1
1.00 3.00
N 12 12
Mean 40.0833 32.5833
Std. Deviation 5.38446 2.53909
Std. Error Mean 1.55436 .73297
Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-1 is higher than that of the group-3. That is, satisfaction level for liquid fund has, on average, higher in case of businessman than doctors
Independent Samples Test Leve Levene ne's 's
Test Test
for for Equa Equali lity ty of Variances
t-test for Equality of Means 95% Interval Sig.
Tota otal Equal qual
F vari varian anc ces 3.661
Sig. .043
assumed Equa Equall vari varian ance ces s
t 4.364
df 22
tailed) .000
4.364
15.662 .001
(2- Mean
Confidence of
Std. Std.
Difference 7.50000
Erro Error r Difference Difference Lower Upper 1.71851 3.93602 11.06398
7.50000
1.71851
3.85051
11.14949
not assumed
Seco Secondl ndly, y, we see see the Leven Levene's e's Test Test for Equal Equality ity of Varia Variance nces. s. Here Here the the Leven Levene's e's test test is significant. Here, we see that the significance is .043, which is not greater than .05. We can assum assumee that that the varia variance ncess are are not not appro approxim ximate ately ly equal equal.. Final Finally, ly, we see see the result resultss of the Independent Samples T Test. Based on the results of our Levene's test; T value is 4.364 We have 15.662 degrees of freedom. Sig. level is .001 i.e. 0.1%
Therefore Therefore we reject the null hypothesis hypothesis (H 03) and there is significant significant difference between the two groups (the significance is not greater than .05). Therefore, we can say that there is significant difference between the satisfaction level between businessman and doctors invested in liquid funds. HYPOTHESIS:
Null Null (H04): The means means of the two groups groups (businessma (businessman n and doctors) doctors) are not signific significantl antly y different. Alternate: The means of the two groups are significantly different
SPSS Output:
the
4) Following is a sample output of an independent samples T test. We compared the mean perception for investing in liquid funds between businessman (group-1) and doctors (group3)
Group Statistics grouping
total dimension1
1.00 2.00
N 12 12
Mean 43.2500 41.5833
Std. Deviation 2.52713 6.22982
Std. Error Mean .72952 1.79839
Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-1 is higher than that of the group-2. That is, perception for investing in liquid fund has, on average, higher in case of businessman than chartered accountant. Independent Samples Test Leve Levene ne's 's
Test Test
for for Equa Equali lity ty of Variances
t-test for Equality of Means 95% Interval Sig.
total
Equal
F Sig. variances 11.774 .002
assumed Equa Equall vari varian ance ces s
t .859
df 22
tailed) .400
.859
14.525 .404
(2- Mean
Confidence of
Std. Std.
Difference 1.66667
Erro Error r Difference Difference Lower Upper 1.94073 -2.35815 5.69148
1.66667
1.94073
-2.48171
5.81505
not assumed
Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is not significant. Here, we see that the significance is .002, which is not greater than .05. We can assume that the variances are not approximately equal. Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test; T value is 0.859
the
We have 14.525 degrees of freedom. Sig. level is .404 i.e. 40.4 %
Therefore we fail to reject the null hypothesis and there is no significant difference between the two groups (the significance is greater than .05). There Therefor fore, e, we can can say that that there there is no signif signific ican antt differ differen ence ce betwe between en the the perc percept eptio ion n for for investment in liquid fund between businessman and chartered accountant. HYPOTHESIS:
Null (H05): The means of the two groups (chartered accountant and doctors) are not significantly different. Alternate: The means of the two groups are significantly different SPSS Output:
5) Following is a sample output of an independent samples T test. We compared the mean perception for investing in liquid funds between chartered accountant (group2) and doctors (group-3) Group Statistics grouping
total dimension1
2.00 3.00
N 12 12
Mean 41.5833 38.9167
Std. Deviation 6.22982 3.89541
Std. Error Mean 1.79839 1.12451
Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-2 is higher than that of the group-3. That is, perception for investing in liquid fund has, on average, higher in case of chartered accountant than doctors.
Independent Samples Test Leve Levene ne's 's
Test Test
for for Equa Equali lity ty of Variances
t-test fo for Eq Equality of of Me Means 95% Interval Sig.
total
Equal
F variances 4.110
Sig. .055
assumed Equa Equall vari varian ance ces s
t 1.257
df 22
1.257
18.461 .224
(2- Mean
tailed) .222
Confidence of
Std. Std.
Difference 2.66667
Erro Error r Difference Difference Lower Upper 2.12102 -1.73207 7.06540
2.66667
2.12102
-1.78147
7.11481
not assumed
Seco Secondl ndly, y, we see see the Leven Levene's e's Test Test for Equal Equality ity of Varia Variance nces. s. Here Here the the Leven Levene's e's test test is significant. Here, we see that the significance is .055, which is greater than .05. We can assume that the variances are approximately equal.Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test; we know that we have approximately equal variance, so we will read the top line. T value is 1.257 We have 22 degrees of freedom. Sig. level is .222 i.e. 22.2%
Therefore we fail to reject the null hypothesis and there is no significant difference between the two groups (the significance is greater than .05). Therefore, Therefore, we can say that there is no significant significant difference between the perception for investing in liquid fund between doctors and chartered accountant. HYPOTHESIS:
Null Null (H06): The means means of the two groups groups (businessma (businessman n and doctors) doctors) are not signific significantl antly y different. Alternate: The means of the two groups are significantly different
the
SPSS Output:
6) Following is a sample output of an independent samples T test. We compared the mean perception for investing in liquid funds between businessman (group-1) and doctors (group-3)
Group Statistics grouping
total dimension1
1.00 3.00
N 12 12
Mean 43.2500 38.9167
Std. Deviation 2.52713 3.89541
Std. Error Mean .72952 1.12451
Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-1 is higher than that of the group-3. That is, perception for investing in liquid fund has, on average, higher in case of businessman than doctors. Independent Samples Test Leve Levene ne's 's
Test Test
for for Equa Equali lity ty of Variances
t-test for Equality of Means 95% Interval Sig.
Tota otal Equal qual
F vari varian anc ces 2.232
assumed Equa Equall vari varian ance ces s
Sig. .149
t 3.233
df 22
tailed) .004
3.233
18.866 .004
(2- Mean
Confidence of
Std. Std.
Difference 4.33333
Erro Error r Difference Difference Lower Upper 1.34042 1.55348 7.11319
4.33333
1.34042
1.52646
7.14021
not assumed
Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is not significant. Here, we see that the significance is .149, which is greater than .05. We can assume that the variances are approximately equal. Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test; T value is 3.233
the
We have 22 degrees of freedom. Sig. level is .004 i.e. 0.4%
Therefore we reject the null hypothesis and there is significant difference between the two groups (the significance is not greater than .05). Therefore, Therefore, we can say that there is significant difference between the perception for investing in liquid funds between businessman and doctors.
RESULTS:
Firstly, from the above statistical independent sample T test it is calculated calculated that there is no diffe differe rence nce in satisf satisfac actio tion n level level betwe between en the busin business essma man n and charte chartered red accountant invested in liquid funds. Both are approximately equally satisfied with the returns, tax savings and past performance of their funds.
But there is a difference between businessman and doctors who invested in liquid funds as from the above test it is calculated that businessman are more satisfied with returns, tax saving and past performance of their fund than doctors.
Also in the case of comparison with chartered accountant and doctors there is a difference difference between satisfaction levels as chartered accountant accountant are more satisfied than doctors.
Secondly, if we see the result of investors who do not invest in liquid funds stated in above above statisti statistical cal calculat calculation ion that, that, there there is a differen difference ce between between busines businessman sman and doctors perception to enjoy advantages of liquid funds. As businessman are more interested than doctors.
But there is no difference between the perception of chartered accountant and doctors and same in case of comparison between businessman and chartered accountant.
SUGGESTIONS:
The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made made to realiz realizee that that ignor ignoranc ancee is no longe longerr bliss bliss and what what they they are losing losing by not not investing.
Mutual funds offer a lot benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? So the advisors should try to change their mindsets. The advisor should target more n more of young investors and the persons at the height of their career would like to go for advisors due to lack of expertise and time.
The advisors may try to highlight some of the value added benefit, rupee cost averaging, and the systematic transfer plan, rebalancing etc. these options are not offered by other options single-handedly. So these are the enough to drive the investors towards mutual funds. Investors could also try to increase the spectrum of services offered.
Now the most important reason for not availing the services of advisors was spotted of being expensive. The advisor should try to charge nominal fees at the beginning or they can offer more services and benefits at existing rate. They should also follow the decency and follow the code of ethics so that the investor could trust upon them.
IMPLICATIONS: In today’s complex financial environment, investors have unique needs which are derived from their risk appetite and financial goals. But regardless of this, every investor seeks to maximize his returns and safety on his investments without capital erosion. And investment in liquid funds has advantages in terms of liquidity, safety and portability. They
can be redeemed within 24 hours and have no exit load.
Liquid funds, an attractive alternative for parking funds lying idle in savings bank accounts. Reason: they offer higher post-tax returns, are liquid and provide a reasonable degree of safety in terms of the principal invested. The study is useful for: •
Investors who are in higher tax bracket and prefer short term parking of fund can evaluate through my research the advantages and satisfaction level of other investors investing in liquid funds.
•
Organization can evaluate the satisfaction level and perception of investors and can improve the products facilities to attract more investors.
•
It will help the students to know the fundamental and technical aspect about liquid funds.
•
It is also beneficial for the institutional investors to know the investors outlook towards liquid fund.
CONCLUSION: Hence, from the above research it can be analyzed that overall businessman and chartered accountant are more satisfied than doctors and businessman and chartered accountant are equally satisfied. satisfied. secondly, there is no significant difference between the perception perception of businessman businessman and chartered accountant and same with chartered accountant and doctors but the perception of businessman and doctors are varies.
ANNEXURE:
QUESTIONNIARE
GENERAL QUESTION
Where do you generally prefer to invest in? provident fund 1. public provident
2. fixed deposit 3. Mutual fund 4. Real estate 5. Gold 6. Life insurance . For how much period you would prefer to invest?
1. Short term ( 0-5)
(b) long term (5& above)
Rate the following items affecting your investment decisions on a scale of 1-5 wher wheree 1 stan stands ds for for maxi maximu mum m agre agreem emen entt and and 5 stan stands ds for for maxim aximum um agreement.
1. How far do you invest according to taxable income?
1
2
3
4
5
2. Up to what extent you have done tax planning?
1
2
3
4
5
3. How much does return on investment matter to you?
1
2
3
4
5
4. How much does lock-in-period matter to you?
1
2
3
4
5
5. Up to what extent your investment allows tax exemption benefits?
1
2
3
4
5
4
5
6. Your attitude towards risk?
1
2
3
7. Are you aware of liquid funds?
1. Yes
[ ]
(b) No [ ]
IF YES: 8. Up to what extent you are satisfied with returns?
1
2
3
4
5
9. Up to what extent you are enjoying taxation benefits?
1
2
3
4
5
10. Your satisfaction level with past performance of your fund?
1
2
11. Rate the risk factor.
3
4
5
1
2
3
4
5
12. Your satisfaction level in comparison to bank FDs?
1
2
3
4
5
13. Up to what extent you are planning to invest in?
1
2
3
4
5
IF NO: 14. Up to what extent would you like to invest in scheme with short tenure say no lock-in-period?
1
2
3
4
5
15. If you are in a higher tax bracket, up to what extent you like to gain maximum tax efficient returns?
1
2
3
4
5
16 Up to to what extent would would you like like to enjoy enjoy easy liquidity of your
1
2
3
4
investment?
5
17. How far do you invest in a scheme with good returns, low risk and taxation
1
2
3
4
Benefits?
5
18. Would you go for the product with short tenure and great tax benefit to invest in to meet short term goals?
1
2
3
4
5
GLOSSARY: 1. Account Statement: Statement issued by the mutual fund, in lieu of the unit certificate, giving details of transactions and holdings of an investor in the different schemes of the fund. 2. Adjusted NAV: The Net Asset Value after adjusting for all changes caused due to dividend declaration, bonus etc. assuming reinvestment of distributions made to the investors at the prevailing NAV. 3. Annual Report: The yearly yearly record record of scheme scheme's 's perfor performan mance, ce, and is distr distribu ibuted ted to investors and/or shareholders under SEBI regulations. 4. Applicable NAV: It is the NAV that will be applied for a transaction depending upon the cutoff time specified by the Mutual Fund. All investments or redemptions are processed at that particular NAV. A different NAV holds if received after the cutoff time. 5. Asset Allocation: Thee dist distri ribut butio ion n of tota totall funds funds avail availabl ablee with with the the schem schemee into into Allocation: Th instruments of various types such as stocks, bonds etc. based on the scheme's investment objective as detailed in the offer document. 6. Asset Management Company: It is the investment manager for the mutual fund. It is a company set up primarily for managing the investment of mutual funds and makes investment decisions in accordance with the scheme objectives, deed of Trust and other provisions of the Investment Management Agreement. For Tata Mutual Fund, Tata Asset Management Limited is the Asset Management Company. 7. Benchmark: Th Thee inves investm tmen entt perfo perform rman ance ce of the the sche scheme me needs needs to be compar compared ed in relative relative terms against some indicator, indicator, which is called called as the benchmark benchmark for the scheme. For example, the performance of an equity fund is benchmarked against the BSE Sensex.
8. BSE Sensex: A index reflecting the stock prices of 30 companies listed on the Bombay Stoc Stock k Ex Excha chang ngee (BSE (BSE)) whic which h is take taken n to be repr repres esent entat ativ ivee of the the stoc stock k mark market et movement. 9. Capital Gains: The profit realizations on sale of securities and certain other capital assets (including units of mutual funds) are called capital gains. The gains can be classified into long-term, if the investments are held for more than one year, or shortterm, otherwise, and are charged at different tax rates. 10. Close ended schemes: Schemes have a pre-specified maturity period and investments in these schemes can be made at the time of the IPO and thereafter at market price through the stock exchange on which the same is listed. The market price is generally at a discount to the NAV depending upon market perception and expectations of the scheme. The Fund may also offer an exit route by offering to repurchase at NAV related prices. 11. Compliance Officer SEBI regulations regulations require that an officer be appointed by the AMC AMC to comp comply ly with with vari variou ouss regul regulat ator ory y requ requir irem emen ents ts and and to redr redres esss inve invest stor or grie grieva vanc nces es associated with the funds. 12. Current Load: It refers to the load structure applicable currently on any fund. Funds keep revising the load structures from time to time. 13. Current Yield: The ratio of coupon interest to the actual market price, prevailing in the market, of the bond expressed as a percentage: annual interest/ current market value = current yield. 14. Custodian: SEBI mandates that a Custodian be appointed for safekeeping of a fund's securities and other assets. 15. Cutoff time: Investments and redemptions are processed at a particular NAV. This NAV is a function of the cutoff times specified by the fund. For example a fund may 10.00 am as the cutoff time in the Liquid Fund for previous day NAV. Investment Applications received after the cutoff time of 10.00 am will get same day NAV, while applications rece receiv ived ed befo before re 10 am will will get get prev previo ious us day day NAV, NAV, assu assumi ming ng that that ther theree are are no holidays/Sundays involved in between.
16. Debt Fund: Funds that invest predominantly in fixed income bearing instruments such as corpor corporate ate debentu debentures res,, PSU bonds, bonds, gilts, gilts, treasu treasury ry bills, bills, certif certifica icates tes of deposit deposit and commercial papers. These funds are the least risky and are generally preferred by riskaverse investors. However they are prone to interest rate risk. 17. Diversification/Spreading the risk: Diversification, i.e. investing across a number of asset classes, assets within a asset class, helps in reducing the risk. 18. Dividend Plan: Generally a scheme has two plans, Growth Plan and Dividend plan. In the latter earnings of the scheme are declared as dividends, as and when there is a distributable surplus available with the scheme as per the Trustees. 19. Dividend Payout: Under the Dividend plan of a scheme there are two options available available to the investor, viz. Dividend Payout option and Dividend Reinvestment option. Under the Dividend Payout option, the dividend declared is also actually distributed i.e. given to the investor. 20. Dividend Reinvestment: Reinvestment: Under the Dividend plan of a scheme there are two options available to the investor, viz. Dividend Payout option and Dividend Reinvestment option. Under the Dividend Reinvestment option, the dividend declared is not distributed i.e. given to the investor. but reinvested in the scheme itself. 21. Dividend yield: It refers to the dividend earned per unit in Rupees of a scheme at the prevailing NAV. 22. Duration: This is a tool used to calculate the average holding period of the assets in a debt scheme, and can help, particularly Modified Duration, in estimating the sensitivity of a fund to incremental yield movements. move ments. 23. Entry Load: It is the load charged by the fund when one invests into the fund. It increases the price of the units to more than the NAV and is expressed as a percentage of NAV. For example a 1 % entry load will increase the NAV from Rs 11 to Rs 11.11 11.1 1 and therefore the number of units allotted will be lesser to that extent.
24. Expense Ratio: The Expenses of a scheme include management fees and all the fees associ associate ated d with with the scheme scheme's 's daily daily operat operation ions. s. Expens Expensee Ratio Ratio refers refers to the annual annual percentage of fund's assets that is paid out in expenses and can effect the performance of o f the scheme. 25. Exit Load: It is the load charged by the fund when one redeems the units from the fund. It reduces the price of the units to less than the NAV and is expressed as a percentage of NAV. 26. Face Value: The original issue price of one unit of o f a scheme, generally Rs 10. 27. First In First Out: It is an accounting method which assumes that the units purchased first are the units sold/redeemed first. 28. Fund H/Shee is the the pers person on who who makes makes all all the the inve invest stme ment nt deci decisi sion onss for for Fund Manager: Manager: H/Sh deployment of the funds of a scheme. 29. Gilts/Government Securities: Securities created and issued by the Central Government and/or a State Government, and may include securities unconditionally guaranteed by the Government. The coupon on these securities is determined by an auction process. 30. Gilt Funds: Gilt Funds are those schemes which as per their offer document can invest only in government securities of different maturities. They offer lower returns as the credit risk is virtually absent and there are no chances of government defaulting on its payment obligations. This effectively reduces the yield on them. They are still subject to the interest rate risk. 31. Growth Plan: The Growth plan of a scheme retains/ploughs back the earnings, instead of declaring dividends of the scheme. The returns from the investor's point of view are accu accumu mula late ted d with within in the the sche scheme me.. Grow Growth th Plan Plan is diff differ eren entt from from the the Divi Divide dend nd Reinvestment Option as in the latter dividends are declared but not distributed, while in the Growth Plan the dividends are not declared. There are differing differing implications implications for tax computation.
32. Guaranteed Guaranteed Returns: Returns: Returns from mutual fund schemes are subject to market and other investment risks. As such there are no assured/guaranteed returns in mutual funds. This This applie appliess even to debt debt scheme schemes. s. The launch launch of scheme scheme/fu /fund nd offeri offering ng guaran guarantee teed d returns is now subject to certain restrictions imposed by the SEBI, and generally SEBI does not allow guaranteed returns. 33. Index Funds: A type of mutual fund in which the portfolios portfolios are constructe constructed d to mirror a specific market index. Securities are purchased in the same proportions as in the selected Inde Index. x. Index Index fund fundss are are expec expecte ted d to provi provide de a rate rate of retu return rn over over time time that that will will approximate or match, but not exceed, that of the index which they are mirroring. The focus is on passive investment style. 34. Indexation: The capital gains arising out of selling mutual fund units are taxed at Long Term Capital Gains rate if they are held for more than one year. The Long term capital gains rate can be computed either as 10 % flat or 20 % with indexation benefit. For this the government has specified an index linked to the wholesale price index. The indices of two years (year of purchase and the year of sale) are used for the purpose of computing capital gains tax. The purchase price is multiplied by the index of the year of sale and the product is divided by the index of the year of purchase. This indexed purchase price is deducted from the sale price to calculate the indexed capital gains. The tax rate of 20 % is applied to the indexed capital gains. 35. Inflation: The rise in prices of goods and services over a period of time. 36. Inflation Risk: The probability of the value of an asset being eroded on account of inflation. 37. Liquid Funds: Funds, as per their offer documents, investing only in short-term money market instruments including treasury bills, commercial paper and certificates of deposit. The objective is to provide liquidity and preserve the capital. 38. Liquidity: From the Fund management point of view, the cash and cash equivalent assets available with a fund to meet expenses and immediate redemption requirements of the investors. It refers to the ability to buy or sell an asset quickly or the ability to convert to
cash quickly. From the Investor point of view, it reflects the ease and speed with which an investor can convert his/her unit holdings into cash. 39. Lock-in period: The cooling period after investment in fresh units during which the investor cannot redeem the units. 40. Management Fee: The fees charged to a scheme for investment management of the funds under the scheme, scheme, usually expressed expressed as percentage percentage of assets, and is subject to limits prescribed by SEBI. 41. Market Risk: It refers to the risk posed by the market in itself i.e. the risk that the price of a security will rise or fall due to changing chang ing economic, political, or market conditions. 42. Money Market: It refers to a market for very short-term securities less than a year, such as Treasury Bills and Call Money make up the bulk of trading in the money markets. 43. Mutual Funds: An investment company/trust that pools money from unit holders and invests that money into a variety of securities, including stocks, bonds, and moneymarket instruments as defined in the offer document of the specific mutual fund. 44. Net Asset Value: The value of fund's portfolio at market value less current liabilities and other accrued expenses divided by the number of units outstanding. Net asset value is normally computed daily. 45. No Load: It refers to the fund that does not charge any load for buying or selling its units, i.e. the investor can transact at the NAV. 46. Non Performing Assets: Assets that do not provide returns are classified as NPAs as per the provisions of SEBI regulations. 47. Offer Document: It is the official document issued by mutual funds prior to the launch of a fund describing the characteristics of the proposed scheme/fund to all its prospective inve invest stor ors. s. It cont contai ains ns info inform rmat atio ion n requi require red d by SEBI SEBI perta pertain inin ing g to issu issues es such such as investment objective and policies, services, and fees.
48. Open Ended Fund/Scheme: It is a type of a scheme/fund where purchase or sale of units is offered on a continued basis at NAV related prices. 49. Redemption: An investor wishing to withdraw his/her investment from a scheme/fund gives a redemption transaction. The investor is paid a NAV linked price. 50. Risk Adjusted Returns: For the purpose of comparing returns across schemes involving varying levels of risk, the returns are adjusted for the level of risk before comparison. Such returns (reduced for the level of o f risk involved) are called risk-adjusted returns. 51. Sale Price: The price at which a fund offers to sell one unit of its scheme to investors. This NAV is grossed up with the entry load applicable, if any. 52. Sponsors: A sponsor is the person who, acting alone or in combination with another body or corporate, establishes a mutual fund and applies to SEBI for its registration. As per SEBI regulations, the sponsor has to contribute con tribute a minimum of 40% of the net worth of the AMC. 53. Systema plan offe offere red d to faci facili lita tate te syst system emat atic ic Systematic tic Investm Investment ent Plan (SIP): (SIP): It is a plan investments at regular intervals so that an investor can give post-dated cheques to the mutual fund to allot fresh units at specified intervals (usually monthly or quarterly). On the specified dates, the Cheque are realized by the mutual fund and additional units at the prevailing NAV are allotted to the investor. SIP helps investors to average the cost of acquisition. 54. Systematic Withdrawal Plan (SWP): It is the opposite of SIP and facilitates regular withdrawals. This helps investors in meeting their regular financial needs. 55. Total Return rn on inve invest stme ment nt,, calc calcul ulat ated ed afte afterr taki taking ng into into acco account unt capi capita tall Total Return Return:: Retu appreciation, dividends or interest, and individual tax considerations adjusted for present value and expressed on an annualized basis. 56. Trustee: The Trustees comprise the Trust and having an overall supervisory authority over the AMC. They ensure that the AMC follow the trust deed, the SEBI regulations and the offer document and the assets of the funds are held safely.
57. Yield Curve: The curve gives the relationship between yields on a group of fixedincome securities with varying maturities viz. treasury bills, notes, and bonds. The curve typically slopes upward since longer maturities normally have higher yields, although it can be flat or even inverted. 58. Yield to Maturity: Used to determine the rate of return an investor will receive if a longterm, interest-bearing investment, such as a bond is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield and the time between interest payments.
REFERENCES: •
www.birlamutualfund.com
•
www.mutualfundindia.com
•
www.moneycontrol.com
•
www.theeconomictime.com
•
www.ineindia.com
•
www.valuesearchonline.com
•
www.investopidia.com
•
Fatchsheets and statements of Birla sun life
•
The economics times
