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Project Report( Submitted for the Degree of B.Com (Honours)in Accounting and Finance under the Universityof Calcutta). Title of the Project“Study and Analysis of Mutual Funds” Submitted by VIVEK SAHA Roll No.- Registration No.- ACKNOWLEDGEMENT
Before we get into thick of things, I would like to add a fewwords of appreciation for the people who have been a part ofthis project right from its inception. The writing of this projecthas been one of the significant academic challenges I have facedand without the support, patience, and guidance of the peopleinvolved, this task would not have been completed. It is to themI owe my deepest gratitude. It gives me immense pleasure in presenting this projectreport on “STUDY and ANALYSIS OF MUTUAL FUNDS IN INDIA”.It has been my privilege to have a team of project is a result ofsheer hard work, and determination put in by me with the helpof my project guide. I hereby take this opportunity to add a special note ofthanks for Prof TANMAY GHOSH, who undertook to act as mymentor despite his many other academic and professionalcommitments. His wisdom, knowledge, and commitment to thehighest standards inspired and motivated me. Without hisinsight, support, and energy, this project wouldn’t have kick-started and neither would have reached fruitfulness. I also feel heartiest sense of obligation to my library staffmembers & seniors, who helped me in collection of data &resources material & also in its processing as well as in draftingmanuscript. The project is dedicated to all those people, whohelped me while doing this project.
OBJECTIVES OF THE STUDY The specific objectives of the study are as follows:-1. To analyze the trends in returns of selected mutual funds.2. To understand the Functions of an Asset Management Company3. To understand the performances of various schemes using various tools to measure the performances.4. To measure and compare the performance of selected mutual fund schemes of different mutual fund companies and other Asset Management Companies.
Supervisor’s CertificateThis is to certify that Mr. VIVEK SAHA, a student of B.Com (Honours) inAccounting & Finance of Acharya Girish Chandra College under theUniversity of Calcutta has worked under my supervision and guidance for hisproject work and prepared a Project Report with the title “STUDY andANALYSIS OF MUTUAL FUNDS IN INDIA”.The project which he is submitting is his genuine and original work to thebest of my knowledge. Signature Place: Kolkata Name: Prof. Tanmay Ghosh. Date: Designation:
Student’s DeclarationI hereby declare that the Project Work with the title “STUDY and ANALYSIS OFMUTUAL FUNDS IN INDIA” submitted by me for partial fulfillment of the degree ofB.Com (Honours) in Accountancy & Finance under the University of Calcutta is myoriginal work and has not been submitted earlier to any other University for thefulfillment of the requirement for any course of study.I also declare that no chapter of this manuscript in whole or in part has beenincorporated in this report from any earlier work done by others or by me. However,extracts of any literature which has been used for this report has been dulyacknowledged providing details of such literature in the references. SignaturePlace: KOLKATA Name : Vivek SahaDate: Address : 29, Durgabari Road, Kolkata - 700028 Registration No.: 141-1121-0096-10 Roll No.: 1141-61-0195
INDEXSerial Topics Page No. No. 1 Introduction 1 2 Why Select Mutual Fund? 2 3 History of Mutual Fund 3-4 4 Advantages of Mutual Fund 5-6 5 Disadvantages of MF 7-8 6 Types of MF in India 9-14 7 SEBI Regulations 15-16 8 AMFI 17-18 9 Mutual Fund in India 19-23 10 Unit Trust of India MF 24-32 11 State Bank of India MF 33-36 12 Future Prospect of MF in 37-38 India 13 MF Fees & Expenses 39 14 Definition on key terms 40-41 15 Data Collection - 16 Conclusion 42 17 Bibliography 43
INTRODUCTIONTo state in simple words, a mutual fund collects the savingsfrom small investors, invest them in Government and othercorporate securities and earn income through interest anddividends, besides capital gain. It works on the principle of”small drop of water makes a big ocean’..DEFINITIONThe Securities and Exchange Board of India (MutualFunds) Regulation, 1993 defines a mutual fund “afund established in the form of a trust by a sponsor,to raise monies by the trustees through the sale ofunits to the, public, under one or more schemes, forinvesting in securities in accordance with theseregulations”According to Weston J. Fred and Brigham, Eugene, F,Unit trusts are “corporations which accept dollarsfrom savers and then use these dollars to buy stock,long term bonds, short term debt instruments issuedby business or government units; these corporationspool funds and thus reduce risk by diversification”.Why Select Mutual Funds ?
The risk return trade-off indicates that if investor iswilling to take higher risk then correspondingly he can expecthigher returns and vice-versa if he pertains to lower riskinstruments, which would be satisfied by lower returns. Forexample, if an investors opt for bank FD, which providemoderate return with minimal risk. But as he moves ahead 10invest in capital protected funds and the profit-bonds that givesus more return which is slightly higher as compared to thebank deposits but the risk involved also increases in the sameproportion. Thus investors choose mutual funds as their primarymeans of investing, as Mutual funds provide professionalmanagement, diversification, convenience and liquidity. That doesnt mean mutual fund investments risk free. This is because the money that is pooled in are notinvested only in debts funds which are less riskier but are alsoinvested in the stock markets which involves a higher risk butcan expect higher returns. Hedge fund involves a very high risksince it is mostly traded in the derivatives market which isconsidered very volatile.HISTORY OF MUTUAL FUNDS
An open-end fund is one that is available for subscription allthrough the year. These do not have a fixed maturity. Investors canconveniently buy and sell units at Net Asset Value ("NAV") relatedprices. The key feature of open-end schemes is liquidityThe Mutual fund industry in India started in 963 with the formationof UTI (united trust of India), at the initiative of government ofIndia. The history of Mutual Funds in India can be broadly dividedinto Four Phases.First Phase- 1964-87 Unit Trust of India was established by an act of Parliament. Itwas set up by the Reserve Bank of India and functioned under theRegulatory and Administrative control of the Reserve Bank ofIndia. In 1978 UTI was de-linked from the RBI and IDBI took overthe regulatory and administrative control in place of RBI. The firstscheme launched by UTI was Unit Scheme 1964. At the end of 1988UTI had Rs. 6700 crores of assets under management.Second phase- 1987-1993 (entry of public sector funds). 1987 marketed the entry of non-UTI, public sector mutualfunds set up by public sector banks and life insurance Corporationof India (LIC) and general Insurance Corporation of India (GIC). SBIMutual fund was the first non-UTI Mutual fund established in June1987 followed by can bank Mutual fund (Dec 1987), Punjabnational bank mutual fund (August 89). India bank mutual fund(Nov 89). Bank of India (June 90), bank of Baroda mutual fund (Oct92). LIC established its mutual fund in Nov 1989 while GIC had setup its mutual fund in December 1990 at the end of 1993, the mutualfund industry had asset under management of Rs.47,004 crores.Third phase- 1993-2003 (entry of private sector funds) With the entry of private sector funds in 1993, an erastarted in the Indian mutual fund industry, giving the Indian
investors a wider choice of fund families, Also. 1993 was theyear in which the first mutual fund regulations came into being,under which all mutual funds, except UTI were to be registeredand governed, the Kothari pioneer (now merged with FranklinTempleton) was the first private sector mutual fund registeredin July 1993. The 1993 SEBI (mutual funds ) registrations weresubstituted by a more comprehensive and revised mutualfunds regulations in 1996 the number of mutual funds houseswent on increasing, with many foreign mutual funds setting upfunds in India and also the industry has witnessed severalmergers and acquisition. As at the of Jan 2003, there were 33mutual funds with total assets of Rs. 1,21,805 crores. The UTIwith Rs. 44,541 crores of assets under management was wayahead of other mutual funds.Fourthphase-2003-2005: This phase had bitter experience for UTI. It was bifurcatedinto two separate entities. One is the Specified Undertaking ofthe Unit Trust of India with AUM of Rs.29,835 crores (as onJanuary 2003). The Specified Undertaking of Unit Trust ofIndia, functioning under an administrator and under the rulesframed by Government of India and does not come under thepurview 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 theMutual Fund Regulations. With the bifurcation of the erstwhileUTI which had in March 2000 more than Rs.76,000 crores ofAUM and with the setting up of a UTI Mutual Fund, conformingto the SEBI Mutual Fund Regulations, and with recent mergerstaking place among different private sector funds, the mutualfund industry has entered . At the end of September 2004,there were 29 funds, which manage assets of Rs.153108 croresunder 421 schemes.
ADVANTAGES OF MUTUAL FUNDS: lf mutual funds are emerging as the favorite investmentvehicle, it is because of the many advantages they have over otherforms and the avenues of investing, particularly for the investorwho has limited resources available in terms of capital andthe ability to carry out detailed research and marketmonitoring. The following are the major advantages offered bymutual funds to all investors:1. Portfolio Diversification: Each investor in the fund is a part owner of all the fundsassets, thus enabling him to hold a diversified investmentportfolio even with a small amount of investment that wouldotherwise require big capital.2. Professional Management: Even if an investor has a big amount of capital available tohim, he benefits from the professional management skillsbrought in by the fund in the management of the investorsportfolio. The investment management skills, along with theneeded research into available investment options, ensure amuch better return than what an investor can manage on hisown. Few investors have the skill and resources of their own tosucceed in today’s fast moving, global and sophisticated markets.3. Reduction/Diversification Of Risk: When an investor invests directly, all the risk of potentialloss is his own, whether he places a deposit with a company or abank, or he buys share or debenture on his own or in any otherfrom. While investing in the pool of funds with investors, thepotential losses are also shared with other investors. The riskreduction is one of the most important benefits of a collectiveinvestment vehicle like the mutual fund.
4. Reduction Of Transaction Costs: What is true of risk as also true of the transaction costs. Theinvestor bears all the costs or investing such as brokerage orcustody of securities. When going through a fund, he has thebenefit of economics of scale; the funds pay lesser costs becauseof larger volumes, a benefit passed on to its investors.5. Liquidity: Often, investors hold shares or bonds they cannot directly,easily and quickly sell. When they invest in the units or a fund,they can generally cash their investments any time, by sellingtheir units to the fund if open-ended, or selling them in themarket if the fund is close-end. Liquidity of investment is clearly abig benefit.6. Convenience And Flexibility: Mutual fund management companies offer many investorservices that a direct market investor cannot get. Investors caneasily transfer their holding from One scheme to the other; getupdated market information and so on.7. Tax Benefits: Any income distributed after March 31, 2002 will be subjectto tax in the assessment of all Unit holders. However, as a measureof concession to Unit holders of open-ended equity- orientedfunds, income distributions for the year ending March 31. 2003will be taxed at a concessional rate of 10.5%. In case of Individuals and Hindu Undivided Families (HUF) adeduction upto Rs. 9,000 from the Total Income will be admissiblein respect of income from investments specified in Section 80L,including income from Units of the Mutual Fund. Units of theschemes are not subject to Wealth-Tax and Gift-Tax.
DISADVANTAGES OF INVESTINGTHROUGH MUTUAL FUNDS:1. No Control Over Costs: An investor in a mutual fund has no control of the overall costsof investing. The investor pays investment management fees as longas he remains with the fund, albeit in return for the professionalmanagement and research. Fees are payable even if the value of hisinvestments is declining. A mutual fund investor also pays funddistribution costs, which he would not incur in direct investing.However, this shortcoming only means that there is a cost to obtainthe mutual fund services.2. No Tailor-Made Portfolio: Investors who invest on their own can build their own portfoliosof shares and bonds and other securities, Investing through fundmeans he delegates this decision to the fund managers, The very-high-net-worth individuals or large corporate investors may find thisto be a constraint in achieving their objectives. However, mostmutual fund managers help investors overcome this constraint byoffering families of funds - a large number of different schemes -within their own management company. An investor can choose fromdifferent investment plans and constructs a portfolio to his choices.3. Managing A Portfolio Of Funds: Availability of a large number of funds can actually mean toomuch choice for the investor. He may again need advice on how toselect a fund to achieve his objectives, quite similar to the situationwhen he has individual shares or bonds to select.4. The Wisdom Of Professional Management: 2 0 Thats right, this is not an advantage. The average mutual 2fund manager is no better at picking stocks than the average non- 0professional, but charges fees.
5. No Control: Unlike picking your own individual stocks, a mutual fund putsyou in the passenger seat of somebody elses car.6. Dilution: Mutual funds generally have such small holdings of so manydifferent stocks that insanely great performance by a funds topholdings still doesnt make much of a difference in a mutual fundstotal performance.7. Buried Costs: Many mutual funds specialize in burying their costs and in hiringsalesmen who do not make those costs clear to their clients. 2 1 2TYPES OF MUTUAL FUNDS SCHEMES 1
IN INDIA Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a collection of many stocks, an investors can go for picking a mutual fund might be easy. There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds in categories, mentioned below. TYPES OF MUTUAL FUNDS BY NATURE BY INVESTMENT OTHERBY STRUCTURE OBJECTIVE SCHEMES Open-Ended Growth Tax-Saving Equity Funds Schemes Schemes Schemes Close-Ended Income Index Debt Funds Schemes Schemes Schemes Sector Interval Balanced Balanced Specific Schemes Funds Schemes Schemes Money Market Schemes A) BY STRUCTURE 2 2 2 2 1. Open - Ended Schemes:
An open-end fund is one that is available for subscription allthrough the year. These do not have a fixed maturity. Investors "anconveniently buy and sell units at Net Asset Value (“NAV”) relatedprices. The key feature of open-end schemes is liquidity.2. Close - Ended Schemes: A closed-end fund has a stipulated maturity period whichgenerally ranging from 3 to 15 years. The fund is open forsubscription only during a specified period. Investors caninvest in the scheme at the time of the initial public issue andthereafter they can buy or sell the units of the schemes on thestock exchanges: where they are listed. In order to provide anexit route t0 the investors, some close-ended funds give an optionof selling back the units to the Mutual Fund through periodicrepurchase at NAV related prices. SEBI Regulations stipulate that atleast One of the two exit routes is provided t0 the investor.3. Interval Schemes: Interval Schemes are that scheme, which combines thefeatures of open-ended and close- ended schemes. The units may betraded on the stock exchange or may be open for sale or redemptionduring pre-determined intervals at NA V related prices. 2 3 2 3
B) BY NATURE 1. Equity Fund: These funds invest the maximum part of their corpus into equities holdings. The structure of the fund may vary different for different schemes and the fund manager’s outlook on different stocks. The Equity Funds are sub-classified depending upon their investment objective, as follows: • Diversified Equity Funds • Mid-Cap Funds • Sector Specific Funds • Tax Savings Funds (ELSS) Equity investments are meant for a longer time horizon, thus Equity funds rank high on the risk-return matrix. 2. Debt Funds The objective of these Funds is to invest in debt papers, Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are further classified as:• Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government of India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk. These schemes are safer as they invest in papers backed by Government.• Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures and Government securities. 2 4 2 4
• MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return matrix when compared with other debt schemes.• Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested in corporate debentures.• Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and preservation of capital, These schemes invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses and are meant for an investment horizon of 1 day to 3 months. These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of mutual funds. 3. Balanced Funds As the name suggest they are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of the scheme. These schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability in returns. Further the mutual funds can be broadly classified on the basis of investment parameter viz; each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the fund. The investor can align his own investment needs with the funds objective and invest accordingly. 2 5 2 5
C) BY INVESTMENT OBJECTIVEGrowth Schemes: Growth Schemes are also known as equity schemes. Theaim of these schemes is to provide capital appreciation overmedium to long term. These schemes normally invest a majorpart of their fund in equities and are willing to bear short-termdecline in value for possible future appreciation.Income Schemes: Income Schemes are also known as debt schemes. The aimof these schemes is to provide regular and steady income toinvestors. These schemes generally invest in fixed incomesecurities such as bonds and corporate debentures. Capitalappreciation in such schemes may be limited.Balanced Schemes: Balanced Schemes aim to provide both growth and incomeby periodically distributing a part of the income and capital gainsthey can. These schemes invest in both shares and fixed incomesecurities, in the proportion indicated in their offer documents(normally 50:50).Money Market Schemes: Money Market Schemes aim to provide easy liquidity,preservation of capital and moderate income. These schemesgenerally invest in safer, short-term instruments, such astreasury bills, certificates of deposit, commercial paper andinter-bank call money. 2 6 2 6
OTHER SCHEMESTax Saving Schemes: Tax-saving schemes offer tax rebates to the investors undertax laws prescribed from time to time. Under Sec.88 of the IncomeTax Act, contributions made to any Equity Linked Savings Scheme(ELSS) are eligible for rebate.Index Schemes: Index schemes attempt to replicate the performance of aparticular index such as the BSE Sensex or the NSE 50. Theportfolio of these schemes will consist of only those stocks thatconstitute the index. The percentage of each stock to the totalholding will be identical to the stocks index weightage. Andhence, the returns from such schemes would be more or lessequivalent to those of the Index.Sector Specific Schemes: These are the funds/schemes which invest in the securitiesof only those sectors or industries as specified in the offerdocuments, e.g., Pharmaceuticals, Software, Fast MovingConsumer Goods (FMCG), Petroleum stocks, etc. The returns inthese funds are dependent on the performance of the respectivesectors/industries. While these funds may give higher returns,they are more risky compared to diversified funds. Investors needto keep a watch on the performance of those sectors/industriesand must exit at an appropriate time. 2 7 2 7
SEBI REGULATIONS:1. As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds to protect the interest of the investors.2. SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital market.3. The regulations were fully revised in 1996 and have been amended thereafter from time to time.4. SEBI has also issued guidelines to the mutual funds from time to time to protect the interests of investors.5. All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations. The risks associated with the schemes launched by the mutual funds sponsored by these entities are of similar type. There is no distinction in regulatory requirements for these mutual funds and all are subject to monitoring and inspections by SEBI.6. SEBI Regulations require that at least two thirds of the directors of trustee company or board of trustees must be independent i.e. they should not be associated with the sponsors. 2 8 2 8
7. Also, 50% of the directors of AMC must be independent. All mutual funds are required to be registered with SEBI before they launch any scheme.8. Further SEBI Regulations, inter-alia, stipulate that MF’s cannot guarantee returns in any scheme and that each scheme is subject to 20:25 condition [i.e. minimum 20 investors per scheme and one investor can hold more than 25% stake in the corpus in that one scheme].9. Also, SEBI has permitted MF’s to launch schemes overseas subject various restrictions and also to launch schemes linked to Real Estate, Options and Futures, Commodities, etc. 2 9 2 9
ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI): With the increase in mutual fund players in India, a need for mutual fund association in India was generated to function as a non-profit organization, Association of Mutual Funds in India, (AMFI) was incorporated on 22nd August, 1995. AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes are its members. It functions under the supervision and guidelines of its Board of Directors. Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders. The Objectives of Association of Mutual Funds in India: The Association of Mutual Funds of India works with 30 registered AMCs of the country. It has certain defined objectives which juxtapose the guidelines of its Board of Directors, the objectives are as follows:1. This mutual fund association of India maintains high professional and ethical standards in all areas of operation of the industry.2. It also recommends and promotes the top class business practices and code of conduct which is followed by members and 3 0 3 0
related people engaged in the activities of mutual fund and asset management. The agencies that are by any means connected or involved in the field of capital markets and financial services also involved in this code or conduct of the association.3. AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry.4. Association of Mutual Fund of India do represent the Government of India, The Reserve Bank of India and other related bodies on manners relating to the Mutual Fund Industry.5. It develops a team or well qualified and trained Agent distributors. It implements a programme of training and certification for all intermediaries and other engaged in the mutual fund industry.6. AMFI undertakes all India awareness programme for investors in order to promote proper understanding of the concept and working of mutual funds.7. At last but not the least association of mutual fund of India also disseminate information’s on Mutual Fund Industry and undertakes studies and research either directly or in association with other bodies. AMFI Publications: AMFI publish mainly two types of bulletin. One is on the monthly basis and the other is quarterly. These publications are of great support for the investors to get intimation of the know- how or their parked money. 3 1 3 1
MUTUAL FUNDS IN INDIAIn 1963, the day the concept of Mutual Fund took birth inIndia. Unit Trust of India invited investors or rather tothose who believed in savings, to park their money inUTI Mutual Fund.For 30 years, it had goaled without a single secondplayer. Though the 1988 year saw some new mutual fundcompanies but UTI remained in a monopoly position.The performance of mutual funds in India in the initialphase was not even closer to satisfactory level. Peoplerarely understood, and of course investing was out ofquestion. But yes, some 24 million shareholders wereaccustomed with guaranteed high returns by thebeginning of the liberalization of the industry in 1992.This good record of UTI became marketing tool for newentrants. The expectations of investors touched the skyin profitability factor. However, people were miles awayfrom the preparedness of risks factor after theliberalization.The net asset value (NA V) of mutual funds in Indiadeclined when stock prices started falling in the year 31992. Those days, the market regulations did not allow 2 3portfolio shifts into alternative investments, There 2
was rather no choice apart from holding the cash or tofurther continue investing in shares. One more thingto be noted, since only closed-end funds were floated inthe market, the investors disinvested by selling at a lossin the secondary market.The performance of mutual funds in India sufferedqualitatively. The 1992 stock market scandal, the lossesby disinvestments and of course the lack of transparentrules in the whereabouts rocked confidence among theinvestors. Partly owing to a relatively weak stockmarket performance, mutual funds how not yetrecovered, with funds trading at an average discount of1020 percent of their net asset value.The Securities and Exchange Board of India (SEBI)came out with comprehensive regulation in 1993which defined the structure of Mutual Fund and AssetManagement Companies for the first time.The supervisory authority adopted a set of measures tocreate a transparent and competitive environment inmutual funds. Some of them were like relaxinginvestment restrictions into the market, introduction ofopen-ended funds and paving the gateway for mutual 3 3funds to launch pension schemes. 3 3
The measure was taken to make mutual funds the keyinstrument for long-term saving. The more the varietyoffered, the quantitative will be investors.Several private sectors Mutual Funds were launched in1993 and 1994. The share of the private players hasrisen rapidly since then. Currently there are 43 MutualFunds in India.At last to mention, as long as mutual fund companies areperforming with lower risks and higher profitabilitywithin a short span of time, more and more people will beinclined to invest until and unless they are fully educatedwith the do’s and donts of mutual funds.Mutual fund industry has seen a lot of changes in pastfew decades with multinational companies coming intothis country, bringing in their professional expertise inmanaging funds worldwide. In the past few monthsthere has been a consolidation phase going on in themutual fund industry in India. Now investors have a widerange of Schemes to choose from depending on theirindividual profile. 3 4 3 4
MUTUAL FUND COMPANIES IN INDIA: The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched UNIT TRUST OF INDIA (UTI). Until 1987, UTI enjoyed a monopoly in the Indian Mutual Fund market. Then a host of other government controlled Indian Financial companies came up with their own funds, these included STATE BANK OF INDIA, CANARA BANK, AND PUNJAB NATIONAL BANK. This market was made open to private players in 1993, as a result of the historic constitutional amendments brought forward by the then Congress-led Government under the regime of Liberalization, Privatization and Globalization. Kothari Pioneer was the first private sector mutual fund company in India which has now merged with Franklin Templeton. Just after ten years with private sector player’s penetration, the total assets rose up to Rs. 1218.05 bn. Mutual Funds are an under tapped market in India. Despite being available in the market for over two decades now with Assets under Management equaling Rs. 78,171,152 Lakhs (as of 28th February 2010) less than 10% of Indian households have invested in mutual funds. 3 A recent report on Mutual Fund Investments in India 5 3 published by research and analytics firm BOSTON ANALYTICS 5
suggests investors are holding back their money into mutual funds due to their perceived high risk and a lack of information on how mutual’s funds work. This report is based on a survey of approx 10000 respondents in 15 Indian cities and towns as of March 2010. There are 43 Mutual’s funds recently in India.Major Mutual Fund Companies in India 1. ABN AMRO Mutual Fund 2. Bank of Baroda Mutual Fund 3. HSBC Mutual Fund 4. ING Vysya Mutual Fund 5. Prudential ICICI Mutual Fund 6. State Bank of India Mutual Fund 7. Tata Mutual Fund 8. Unit Trust of India Mutual Fund 9. Reliance Mutual Fund 10. Standard Chartered Mutual Fund 11. Birla Sun Life Mutual Fund 12. HDFC Mutual Fund 13. Escorts Mutual Fund 14. Alliance Capital Mutual Fund 15. Franklin Templeton India Mutual Fund 16. Morgan Stanley Mutual Fund India 17. IIFL Mutual Fund 18. IDFC Mutual Fund 19. Indiabulls Mutual Fund 20. LIC Nomura Mutual Fund 21. JM Financial Mutual Fund 22. Axis Mutual Fund 23. BNP Paribas Mutual Fund 24. BOI AXA Mutual Fund 25. Deutsche Mutual Fund 26. Edelweiss Mutual Fund 27. IDBI Mutual Fund 28. JP Morgan Mutual Fund 29. Kotak Mahindra Mutual Fund 30. L&T Mutual Fund 3 6 3 6
UNIT TRUST OF INDIA MUTUAL FUNDUnit Trust of India was created by the UTI Act passed by the Parliament in1963. For more than two decades, it remained the sole vehicle for investmentin the capital market by the Indian citizens. In mid- 1980s Public SectorBanks were allowed to open mutual funds. The real vibrancy and competitionin the Mutual Fund industry came with the setting up of the Regulator SEBIand its laying down the MF Regulations in 1993. UTI maintained its pre-eminent place till 2001, when 8 massive decline in the market indices andnegative investor sentiments after Ketan Parekh scam created doubts aboutthe capacity of UTI to meet its obligations to the investors. This was furthercompounded by two factors namely, its flagship and largest scheme US 64was sold and re-purchased not at intrinsic NA V but at artificial price and itsAssured Return Schemes had promised returns as high as 18% over a periodgoing up to two decades.UTI Mutual Fund is managed by UTI Asset Management Company PrivateLimited (Est.: Jan 14, 2003) who has been appointed by the UTI TrusteeCompany Private Limited for managing the schemes of UTI Mutual Fundand the schemes transferred / migrated from UTI Mutual Fund. No. of schemes 94 No. of schemes including options 366 Equity Schemes 97 Debt Schemes 225 Short term debt Schemes 20 Equity & Debt 12 Money Market 0 Gilt Fund 11 3 7Corpus under management 3 7Rs. 71770.05 Crs. as on Jan 31, 2013.
Some of the funds have won famous awards, including the Best InfraFund globally from Lipper. UTI has been able to benchmark its employeecompensation to the best in the market.Besides running domestic MF Schemes UTI AMC is also registered portfoliomanager under the SEBI (Portfolio Managers) Regulations.This company runs two successful funds with large international investorsbeing active participants. UTI has also launched a Private EquityInfrastructure fund along with HSH Nord Bank of Germany and Shinsei Bankof Japan.Vision:To be the most Preferred Mutual Fund.Mission: 1. The most trusted brand, admired by all stakeholders. 2. The largest and most efficient money manager with global presence. 3. The best in class customer service provider. 4. The most preferred employer. 5. The most innovative and best wealth creator.Assets Under Management: UTI Asset Management Co. LtdSponsor: a. State Bank of India b. Bank of Baroda c. Punjab National Bank d. Life Insurance Corporation of India 3 8Trustee: UTI Trustee Co. Limited. 3 8
SCHEMES A) EQUITY FUND 1. UTI Energy Fund (Open Ended Fund): Investment will be made in stocks of those companies engaged in the following are: Petro sector - oil and gas products & processing All types of Power generation companies. Companies related to storage of energy. Companies manufacturing energy development equipment related (like petro and power) Consultancy & Finance Companies. 2. UTI Banking Sector Fund (Open Ended Fund): An open-ended equity fund with the objective to provide capitalappreciation through investments in the stocks of the companies/institutionsengaged in the banking and financial services activities. 3. UTI Infrastructure Fund (Open Ended Fund): An open-ended equity fund with the objective to provide Capitalappreciation through investing in the stocks of the companies engaged in thesectors like Metals, Building materials, oil and gas, power, chemicals,engineering etc. The fund will invest in the stocks of the companies which form 3part of Infrastructure Industries. 9 3 9
4. UTI Equity Tax Savings Plan (Open Ended Fund): An open-ended equity fund investing a minimum of 80% in equity andequity related instruments. It aims at enabling members to avail tax rebateunder Section 80C of the Income Tax Act, 1962 and provide them with thebenefits of growth. 5. UTI Master Equity Plan Unit Scheme (Close Ended Fund): The scheme primarily aims at securing for the investors capitalappreciation by investing the funds or the scheme in equity shares of companieswith good growth prospects. 6. UTI Equity Fund (Open Ended Fund): UTI Equity Fund is open-ended equity scheme with an objective ofinvesting at least 80% of its funds in equity and equity related instrument withmedium to high risk profile and upto 20% in debt and money marketinstruments with low to medium risk profile. 7. UTI MNC Fund (Open Ended Fund): An open-ended equity fund with the objective to invest predominantly inthe equity shares of multinational companies in diverse sectors such as FMCG,Pharmaceutical, Engineering etc. 8. UTI Dividend Yield Fund (Open Ended Fund): It aims to provide medium to long term capital gains and/or dividenddistribution by investing predominantly in equity and equity relatedinstruments which offer high dividend yield. 4 0 4 0
Some other Equity Funds are:-1. UTI Master share Unit Scheme (Open-Ended Fund)2. UTI Mid-Cap Fund (Open-Ended Fund)3. UTI Opportunities Fund (Open-Ended Fund)4. UTI Transportation and Logistics Fund (Auto Sector Fund) (Open-Ended Fund)5. UTI Growth Sector Fund - Pharma (Open Ended Fund)6. Growth Sector Fund - Services (Open Ended Fund)7. UTI Leadership Equity Fund (Open-Ended Fund)8. UTI Contra Fund (Open-Ended Fund)9. UTI Spread Fund (Open-Ended Fund)10. UTI Growth Sector Fund - Software (Open Ended Fund)11. UTI Master Plus Unit Scheme (Open Ended Fund)12. UTI Master Value Fund (Open Ended Fund)13. UTI Top 100 Fund (Open Ended Fund)14. UTI Wealth Builder Fund (Closed-Ended Fund)15. UTI Long Term Advantage Fund – Series I(Closed- Ended Fund)16. UTI India Lifestyle Fund (Closed-Ended Fund) 417. UTI Rajiv Gandhi Equity Savings Schemes (Open-Ended 1 4 1 Fund)
B) Index Fund:1. UTI Master Index Fund (Open Ended Fund): UTI MF is an open-ended passive fund with the primary investmentobjective to invest in securities of companies comprising the BSESensex in the same weightage as these companies have in BSESensex.2. UTI Gold Exchange Traded Fund (Open Ended Fund): To endeavor to provide returns that, before expense, closely track theperformance and yield of Gold. There can be no assurance or guarantee thatthe investment objective of UTI-Gold ETF will be achieved.3. UTI Sunder (Open Ended Fund): To provide investment returns that, before expenses,closely correspond to the performance and yield of the basket ofsecurities underlying the S & P CNX Nifty Index.C) ASSETS FUND UTI Variable Investment Scheme: UTI VIS-ILP is an open ended scheme with the objective ofproviding the investors with a product that would enable them todiversify their risks through a suitable allocation between debt and equityasset classes and thereby generate superior risk-adjusted returns through adynamic asset allocation process. 42 42
D) BALANCED FUND:1. UTI Mahila Unit Scheme (Open Ended Fund): To invest in a portfolio of equity/equity related securitiesand debt and money market instruments with a viewto generate reasonable income with moderate capitalappreciation. The asset allocation will be Debt: Minimum70%, Maximum 100% Equity: Minimum 0%, Maximum 30%.2. UTI Balanced Fund (Open Ended Fund): An open-ended balanced fund investing between 40% to75% in equity /equity related securities and the balance indebt (fixed income securities) with a view to generateregular income together with capital appreciation.3. UTI Unit Link Insurance Plan (Open Ended Fund): To provide return through growth in the NAV or througdividend distribution and re-investment thereof.Some other Balanced Funds are:- 1.UTI Retirement Benefit Pension Fund (Open- Ended Fund) 2.UTI CCP (Children Career Plan) Advantage Fund (Open-Ended Fund) 3.UTI Charitable, Religion Trust And Registered Society (Open-Ended Fund) 64 64
E) INCOME (DEBT) FUND 1. UTI Bond Fund (Open Ended Fund): Open-end 100% pure debt fund, which invests in rated corporate debt papers and government securities with relatively low risk and easy liquidity. 2. UTI Floating Rate Fund STP (Open Ended Fund): To generate regular income through investment in a portfolio comprising substantially of floating rate debt/ money market instruments and fixed rate debt/money market instruments. 3. UTI Gilt Advantage Fund LTP (Open Ended Fund): To generate credit risk-free return through investments in sovereign securities issued the Central and /or a State Government. Some other Income Funds (DebtFund)are:- UTI G-SEC STP (Open-Ended Fund) UTI G-SEC Investment Plan (Open-Ended Fund) UTI Treasury Advantage Fund (Open-Ended Fund) UTI Mis Advantage Plan (Open-Ended Fund) 65 UTI Short Term Income Fund (Open-Ended Fund) 65 UTI Gilt Advantage Fund STP (Open Ended Fund):
UTI Monthly Income Scheme (Open Ended Fund):UTI Capital Protection Oriented Schemes (Open-Ended Fund)F) LIQUID FUND (DEBT FUND)1. UTI Liquid Cash Plan (Open Ended Fund): The scheme seeks to generate steady & reasonableincome with low risk & high level of liquidity from a portfolioof money market securities & high quality debt.2. UTI Money Market Fund (Open Ended Fund): An open-ended pure debt liquid plan seeking to providehighest possible current income by investing in a diversifiedportfolio of short-term money market securities.SBI Mutual Fund 66 66
SBI Funds Management Ltd. is the investment manager ofSBI Mutual Fund. SBI Mutual Fund has been constituted as atrust, sponsored by State Bank India. Today the Fund has aninvestor base of over 2.8 million spread over 23 schemes. Witha large network of collecting branches and investor servicecentre’s, SBI Mutual Fund constantly endeavors to get closer toits growing family of investors. SBI is the largest public sectorBank in India with 8,836 branches all over India. SBI is theleader in providing loans to trade & industry. It also providesrelated services, which generate significant fee-based income.It has also identified project finance and consumer banking askey areas. SBI Mutual Fund is a bank sponsored mutual fundand SBI Mutual Fund is a result of joint venture between StateBank of India and Societe Generate Asset Management ofFrance. No. of schemes 87 No. of schemes 302 including options Equity Schemes 72 Debt Schemes 178 Short term debt 24 Schemes Equity & Debt 6 Money Market 0 Gilt Fund 16Corpus under managementRs.55809.29 Crs. as on Jan 31, 2013Some of the various Mutual Funds offered by SBI Mutual Fundare discussed below:- 67 67SBI Arbitrage Opportunities Fund
Open-Ended Equity Fund with growth and dividendoption. With no entry load, the minimum investment requiredis Rs 25000.SBI Magnum Balanced FundOpen-Ended Equity and Debt Fund with growth anddividend option. The minimum investment is Rs 1000 butthere is a entry load of 2.25% for investments below 5crores.SBI Magnum Blue-Chip FundOpen-Ended Equity Schemes with growth and dividendoption. The minimum investment is Rs 5000 and has aentry load of 2.25% for investments below 5 crores.SBI Magnum Children’s Benefit PlanOpen-Ended Income Scheme with a face value of Rs 10 and theminimum investment required is Rs 1500. The entry load is 1.5%SBI Magnum Comma FundOpen-Ended Equity Schemes having dividend and growthoption. The minimum investment needed Rs 5000 and theentry load of 2.25% for investments below 5 crores isapplicable.SBI Magnum Contra FundOpen-Ended Equity Schemes having dividend and growthoption. The minimum investment needed Rs 2000 and theentry load of 2.25% for investments below 5 crores isapplicable.SBI Magnum Emerging Businesses Fund 68 68Open-Ended Equity Schemes having dividend and growthoption. The minimum investment needed Rs 2000 and the
entry load of 2.25% for investments below 5 crores isapplicable.SBI Magnum Equity FundOpen-Ended Diversified Equity Fund having dividend andgrowth option. The minimum investment is Rs 1000 andthe entry load of 2.25% for investments below 5 crores isapplicable.SBI Magnum FMCG FundOpen-Ended Equity Schemes with a face value of Rs 10. Theminimum investment needed is Rs 1000 and the entry loadof 2.25% for investments below 5 crores is applicable.SBI Magnum Gilt Fund Long Term PlanOpen-Ended Gilt Schemes with quarterly dividend optionand growth option. As far as minimum investment isconcerned, it is Rs 25,000/- and in multiples of Rs. 5,000 /-thereafter for the Growth option and Rs. 1,00,000/- and inmultiples of Rs. 5,000/- thereafter for Dividend option.SBI Magnum Gilt Fund Short Term PlanOpen-Ended Gilt Schemes with monthly dividend optionand growth option with a minimum investment of Rs25,000/- and in multiples of Rs. 5,000 /- thereafter for theGrowth option and Rs. 1,00,000/- and in multiples of Rs.5,000/- thereafter for Dividend option.Some other SBI Mutual Funds are:- 69 69 SBI Magnum Insta Cash Fund
SBI Magnum Insta Cash Fund- Liquid Floater Plan SBI Magnum Institutional Income Fund SBI Magnum IT Fund SBI Magnum Midcap Fund SBI Magnum Monthly Income Plan SBI Magnum Monthly Income Plan Floater SBI Magnum Multicap Fund SBI Magnum Global Fund SBI Magnum Income Fund SBI Magnum Income Plus Fund Investment Plan SBI Magnum Income Plus Fund Savings Plan SBI Magnum Index Fund SBI Magnum Multiplier Plus SBI Magnum NRI Investment Fund SBI Magnum NRI Investment Fund Flexi Asset Plan SBI Magnum Pharma Fund SBI Magnum Tax Gain Scheme 1993 SBI Premier Liquid Fund SBI ONE India Fund (Close-Ended)Future Prospect of Mutual Funds in India 70 70 The Future of Mutual Funds in India suggests that the industry has
got huge scopes of development in the times to come. The Future of Mutual Funds in India is quite bright, Mutual Funds are one the most popular forms of investments as these funds are diversification, professional management, and liquidity. In the year 2004, the mutual fund industry in India was worth Rs 1, 50,537 crores. The mutual fund industry expected to grow at a rate of 13.4% over the next 10 years. Mutual Fund Assets under Management (MFAUM) Growth 1. In March 1998, the MF AUM was 68, 984 crores. 2. In March 2000, the MF AUM was 93, 717 crores and the percentage growth was 26%. 3. In March 2001, the MF AUM was 83, 131 crores and the percentage growth was 13%. 4. In March 2002, the MF AUM was 94, 017 crores and the percentage growth was 12%. 5. In March 2003, the MF AUM was 75, 306 crores and the percentage growth was 25%. 6. In March 2004, the MF AUM was 1, 37, 626 crores and the percentage growth was 45%. 7. In September 2004, the MF AUM was 1, 51, 141 crores and the percentage growth was 9% in 6(six) months time. 8. In December 2004, the MF AUM was 1, 49, 300 crores and the percentage growth was 1% in 2(two) months time. Future of MF in India – Facts on growth 71 71
Important aspects related to the future of MF in India are:- 1. The growth rate was 100% in 6 (six) previous years. 2. The saving rate in India is 23%. 3. There is a huge scope in the future for the expansion of the mutual funds industry. 4. A number of foreign based assets management companies are venturing into Indian markets. 5. The Securities Exchange Board of India has allowed the introduction of commodity mutual funds. 6. The emphasis is being given on the effective corporate governance of Mutual Funds. 7. The Mutual funds in India has the scope of penetrating into the rural and semi urban areas. 8. Financial Planners are introduced into the market, which would provide the people with better financial planning.MUTUAL FUND FEES AND EXPENSES 72 72 Mutual fund fees and expenses are charges that may he incurred by investors who hold mutual funds. Running a mutual
fund involves costs, including shareholder transaction costs,investment advisory fees, and marketing and distributionexpenses. Funds pass along these costs to investors in a number ofways.1. Transaction Cost Purchase Fee Redemption Fee Exchange Fee2. Periodic Fees Management Fee’s Account Fee’s3. Other Operating Expenses i. Transaction Cost ii. Loads : Front-End load Back-End load Level Load/ Low Load No-Load Fund 73 73
Definitions of key terms:-Net Asset Value (NAV) A Fund’s net asset value or NAV equals the current market value of a fund’s holdings minus the fund’s liabilities (sometimes referred as “net assets”). It is usually expressed as a per-share amount, computed by diving net assets by the number of fund shares outstanding. Funds must compute their net asset value according to their prospectus which is typically at the end of each day the New York Stock Exchange is open, though some funds compute their NAV more than a once daily.Sale Price Sale price is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales load.Repurchase Price It is the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price.Redemption Price It is the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity. Such prices are NAV related. 74 74
Sales Load It is a charge collected by a scheme when it sells the units. Also, called as Front-end load. Schemes that do not charge a load are called No Load schemes.Repurchase or Back-end Load It is a charge collected by a scheme when it buys back the units from the unit holders.Expenses Ratio The expenses ratio allows investors to compare expenses across funds. The expense ratio equals the 12b-1 fee plus the other fund expenses divided by average daily net assets. The expenses ratio sometimes referred to as the “total expense ratio” or TER.Turnover Turnover is the measure of the volume of a fund’s securities trading. It is expressed as a percentage of average market value of the portfolio’s long-term securities. Turnover is the lesser of a fund’s purchases or sales during a given year divided by average long-term securities market value for the same period. If the period is less than a year, turnover is generally annualized. 75 75
Average Assets under Management (AAUM) for the quarter of April - June 2012 (Rs in Lakhs) Average AUMSr. Mutual Fund NameNo Excluding Fund of Funds -Domestic but Fund Of Funds - Domestic including Fund of Funds - Overseas1 Axis Mutual Fund 875874.29 7522.762 Baroda Pioneer Mutual Fund 551145.50 03 Birla Sun Life Mutual Fund 6720595.06 6369.384 BNP Paribas Mutual Fund 456203.69 05 BOI AXA Mutual Fund 13465.80 06 Canara Robeco Mutual Fund 757990.64 110.227 Daiwa Mutual Fund 70954.42 08 Deutsche Mutual Fund 1385245.11 09 DSP BlackRock Mutual Fund 3000176.42 010 Edelweiss Mutual Fund 38024.66 011 Escorts Mutual Fund 19607.38 012 Fidelity Mutual Fund 737841.33 5944.1013 Franklin Templeton Mutual Fund 3553265.74 152150.7114 Goldman Sachs Mutual Fund 431267.96 015 HDFC Mutual Fund 9262452.43 24705.6416 HSBC Mutual Fund 455387.77 017 ICICI Prudential Mutual Fund 7304966.42 10265.9518 IDBI Mutual Fund 519845.20 019 IDFC Mutual Fund 2714653.20 24996.5420 IIFL Mutual Fund 16706.02 0 7621 Indiabulls Mutual Fund 216457.12 0 7622 ING Mutual Fund 92270.53 47357.31
23 JM Financial Mutual Fund 581193.67 024 JPMorgan Mutual Fund 528080.21 025 Kotak Mahindra Mutual Fund 2532352.53 51869.2126 L&T Mutual Fund 304617.13 027 LIC NOMURA Mutual Fund 591922.01 028 Mirae Asset Mutual Fund 46390.22 029 Morgan Stanley Mutual Fund 225034.66 030 Motilal Oswal Mutual Fund 45309.01 031 Peerless Mutual Fund 400897.03 032 PineBridge Mutual Fund 73884.41 033 Pramerica Mutual Fund 238675.76 034 PRINCIPAL Mutual Fund 466034.25 035 Quantum Mutual Fund 19255.02 724.9936 Reliance Mutual Fund 8069446.60 219341.0937 Religare Mutual Fund 1095832.32 1717.4138 Sahara Mutual Fund 78716.75 039 SBI Mutual Fund 4718410.79 70278.9140 Sundaram Mutual Fund 1322841.17 041 Tata Mutual Fund 2075377.66 042 Taurus Mutual Fund 374510.95 043 Union KBC Mutual Fund 203433.57 044 UTI Mutual Fund 6092261.52 0 Grand Total 69278873.93 623354.22 77 77
Average Assets under Management (AAUM) for the quarter of July - September 2012 (Rs in Lakhs) Average AUMSr Mutual Fund Excluding Fund of Funds - Domestic but Fund Of Funds -No including Fund of Funds - Overseas Domestic1 Axis Mutual Fund 1049030.62 10012.852 Baroda Pioneer Mutual Fund 570218.45 03 Birla Sun Life Mutual Fund 7290448.58 7474.774 BNP Paribas Mutual Fund 384199.09 05 BOI AXA Mutual Fund 27310.45 06 Canara Robeco Mutual Fund 732854.96 2793.277 Daiwa Mutual Fund 78867.44 08 Deutsche Mutual Fund 1680704.32 09 DSP BlackRock Mutual Fund 3022732.72 010 Edelweiss Mutual Fund 30649.99 011 Escorts Mutual Fund 22993.40 012 Fidelity Mutual Fund 703093.97 5068.0313 Franklin Templeton Mutual Fund 3904558.04 145903.0214 Goldman Sachs Mutual Fund 430420.49 015 HDFC Mutual Fund 9777366.00 29721.3116 HSBC Mutual Fund 499168.44 017 ICICI Prudential Mutual Fund 7638760.69 11303.5618 IDBI Mutual Fund 541281.57 3847.8819 IDFC Mutual Fund 2800418.81 21334.97 7820 IIFL Mutual Fund 19301.50 0 7821 Indiabulls Mutual Fund 224269.76 0
22 ING Mutual Fund 93533.80 42945.5123 JM Financial Mutual Fund 562372.70 024 JPMorgan Mutual Fund 898882.03 025 Kotak Mahindra Mutual Fund 3031603.12 55002.5226 L&T Mutual Fund 388312.02 027 LIC NOMURA Mutual Fund 635567.24 028 Mirae Asset Mutual Fund 50088.12 029 Morgan Stanley Mutual Fund 235354.62 030 Motilal Oswal Mutual Fund 52861.48 031 Peerless Mutual Fund 479158.64 032 PineBridge Mutual Fund 97702.25 033 Pramerica Mutual Fund 197822.62 034 PRINCIPAL Mutual Fund 477050.65 035 Quantum Mutual Fund 21586.05 954.3936 Reliance Mutual Fund 8632689.98 229932.7037 Religare Mutual Fund 1265550.22 2305.2138 Sahara Mutual Fund 23844.09 039 SBI Mutual Fund 5095880.14 78730.9940 Sundaram Mutual Fund 1366888.39 041 Tata Mutual Fund 2024748.86 042 Taurus Mutual Fund 359961.64 043 Union KBC Mutual Fund 234883.93 044 UTI Mutual Fund 7078278.46 0 Grand Total 74733270.34 647330.98 79 79
Average Assets under Management (AAUM) for the quarter of October – Dec. 2012 (Rs in Lakhs) Average AUMSr Mutual Fund Name Excluding Fund of Funds - Domestic but Fund Of Funds -No including Fund of Funds-Overseas Domestic 1 Axis Mutual Fund 1055039.41 13441.79 2 Baroda Pioneer Mutual Fund 540568.20 0 3 Birla Sun Life Mutual Fund 7688977.51 8870.52 4 BNP Paribas Mutual Fund 321634.34 0 5 BOI AXA Mutual Fund 66114.22 0 6 Canara Robeco Mutual Fund 751292.29 5933.37 7 Daiwa Mutual Fund 53722.85 0 8 Deutsche Mutual Fund 1803736.10 0 9 DSP BlackRock Mutual Fund 3083760.22 0 10 Edelweiss Mutual Fund 24209.69 0 11 Escorts Mutual Fund 23030.26 0 12 Franklin Templeton Mutual Fund 4086857.07 140623.14 13 Goldman Sachs Mutual Fund 478576.44 0 14 HDFC Mutual Fund 10139253.82 36678.02 15 HSBC Mutual Fund 534665.93 0 16 ICICI Prudential Mutual Fund 8139421.08 13138.03 17 IDBI Mutual Fund 625570.30 9938.99 18 IDFC Mutual Fund 3000186.16 19592.96 19 IIFL Mutual Fund 19782.05 0 20 Indiabulls Mutual Fund 255286.75 0 80 80 21 ING Mutual Fund 93276.50 38800.42
22 JM Financial Mutual Fund 746690.12 023 JPMorgan Mutual Fund 1329969.77 024 Kotak Mahindra Mutual Fund 3177282.80 60849.4225 L&T Mutual Fund 1206410.04 0.0026 LIC NOMURA Mutual Fund 688209.43 027 Mirae Asset Mutual Fund 52699.31 028 Morgan Stanley Mutual Fund 253911.00 029 Motilal Oswal Mutual Fund 58836.01 030 Peerless Mutual Fund 472108.89 031 PineBridge Mutual Fund 116420.46 032 PPFAS Mutual Fund N/A N/A33 Pramerica Mutual Fund 203789.76 034 PRINCIPAL Mutual Fund 495544.85 035 Quantum Mutual Fund 25199.94 1165.2536 Reliance Mutual Fund 9063582.35 241425.2537 Religare Mutual Fund 1402483.23 2872.7038 Sahara Mutual Fund 28747.11 039 SBI Mutual Fund 5331126.24 85446.3340 Sundaram Mutual Fund 1459488.18 041 Tata Mutual Fund 1974173.23 042 Taurus Mutual Fund 417691.60 043 Union KBC Mutual Fund 301217.23 044 UTI Mutual Fund 7063814.44 0 Grand Total 78654357.18 678776.19 81 81
SALES DURING THE MONTH OF JANUARY, 2013 Amount in Rs. Crores Nature Structure Open End Close End Total No. of Amount No. of Amount No. of Amount Schemes Schemes Schemes Balanced 31 619 1 - 32 619 ELSS 36 377 13 - 49 377 Equity 294 5222 - - 294 5222FOF Investing 21 64 - - 21 64Overseas Gilt 41 2294 - - 41 2294 GOLD ETF 14 137 - - 14 137 Income 234 85064 417 3695 651 88759 Liquid/Money 55 610826 - - 55 610826 Market Other ETF 20 266 - - 20 266 Total 746 704869 431 3695 1177 708564 82 82
SALES DURING THE MONTH OF DECEMBER,2012 Amount in Rs. CroresNATURE STRUCTURE Open–End Close–End Total No. of Amount No. of Amount No. of Amount Schemes Schemes Schemes Balanced 31 723 1 - 32 723 ELSS 36 218 13 - 49 218 Equity 296 4125 428 5143 724 9268 FOF Investing 21 37 - - 21 37 Overseas Total 384 5103 442 5143 826 10246 SALES DURING THE MONTH OF NOVEMBER,2012 Amount in Rs. Crores Nature Structure Open-End Close-End Total No. of Amount No. of Amount No. of Amount Schemes Schemes Schemes Balanced 31 619 1 - 32 619 ELSS 36 377 13 - 49 377 Equity 294 5222 - - 294 5222FOF Investing 21 64 - - 21 64Overseas Gilt 41 2294 - - 41 2294 GOLD ETF 14 137 - - 14 137 Income 234 85064 417 3695 651 88759 Liquid/Money 55 610826 - - 55 610826 Market Other ETF 20 266 - - 20 266 83 83 Total 746 704869 431 3695 1177 708564
MARKET SHARE OF MUTUAL FUND COMPANIES AS ON 20, JUNE2007 Serial No. Mutual Funds Market Share 1 ABN AMRO Mutual Fund 1.621515733 2 Benchmark Mutual Fund 1.40600982 3 Birla Sun Life Mutual Fund 5.636121131 4 BOB Mutual Fund 0.026526073 5 Canbank Mutual Fund 0.691262347 6 DBS Chola Mutual Fund 0.548024522 7 Deutsche Mutual Fund 1.860427963 8 DSP Merrill Lynch Mutual Fund 3.044508216 9 Escorts Mutual Fund 0.030320807 10 Fidelity Mutual Fund 2.185334641 11 Franklin Templeton Mutual Fund 6.564726022 12 HDFC Mutual Fund 8.770629459 13 HSBC Mutual Fund 3.495188719 14 ICICI Prudential Mutual Fund 11.90396033 15 ING Vysya Mutual Fund 1.152575905 16 JM Financial Mutual Fund 0.907100624 17 Kotak Mahindra Mutual Fund 3.764488012 18 LIC Mutual Fund 2.508606515 19 Lotus India Mutual Fund 0.726212785 20 Morgan Stanley Mutual Fund 0.80232698 21 PRINCIPAL Mutual Fund 2.819975687 22 Quantum Mutual Fund 0.015568755 23 Reliance Mutual Fund 14.91604568 24 Sahara Mutual Fund 0.044817956 25 SBI Mutual Fund 5.052078474 26 Standard Chartered Mutual Fund 4.098738453 27 Sundaram BNP Paribas Mutual Fund 2.328506676 28 Tata Mutual Fund 3.48190415 29 Taurus Mutual Fund 0.078157583 84 30 UTI Mutual Fund 9.518339988 84
TOP 15 FUNDS-PERIOD (LAST 6 MONTHS) Scheme Name Date NAV Last 6Rank Since Inception (Rs.) Months 1 Reliance Media & 26/02 36.28 24.74 16.55 Entertainment Fund - Growth /13 2 ICICI Prudential Banking and 26/02 21.45 17.79 18.4 Financial Services Fund - Retail /13 - Growth 3 Reliance Banking Fund - 26/02 111.2 16.94 27.99 Growth /13 7 4 Sundaram Media & Entert Opp 26/02 12.9 16.93 5.57 Fund - Inst - Growth /13 5 Sundaram Media & Entert 26/02 12.64 16.78 5.12 Opportunities Fund - Regular - /13 Growth 6 Kotak PSU Bank ETF 26/02 332.4 16.58 2.5 /13 6 7 Goldman Sachs PSU Bank 26/02 344.3 16.35 5.1 Exchange Traded Scheme /13 2 8 ICICI Prudential Service 26/02 19.32 15.76 9.51 Industries Fund - Growth /13 9 JPMorgan Asean Equity 26/02 14.65 15.37 26.19 Offshore Fund /13 10 SBI Magnum Midcap Fund - 26/02 25.46 14.7 12.52 Growth /13 11 GS Junior BeES 26/02 116.9 14.6 23.34 /13 12 Sundaram Financial Services 26/02 20.12 14.31 15.97 Opportunities Fund - Inst - /13 Growth 13 GS Bank BeES 26/02 1202. 14.3 19.45 /13 66 14 R* Shares Banking Exchange 26/02 1240. 14.25 19.03 Traded Fund /13 02 85 15 UTI Banking Sector Fund - 26/02 45.34 14.21 18.34 85 Growth /13
TOP 15 FUNDS-PERIOD (LAST 12 MONTHS)Ran Scheme Name Date NAV Last 12 Since k (Rs.) Months Inceptio n1 JPMorgan Asean Equity Offshore 26/02 14.65 33.98 26.19 Fund /132 SBI Pharma Fund - Growth 26/02 58.78 29.31 13.85 /133 SBI Emerg Buss Fund - Growth 26/02 56.37 28.97 22.71 /134 ICICI Prudential FMCG - Growth 26/02 101.6 28.08 18.12 /13 25 Reliance Media & 26/02 36.28 26.48 16.55 Entertainment Fund - Growth /136 ICICI Prudential Banking and 26/02 21.45 24.34 18.4 Financial Services Fund - Retail /13 - Growth7 Axis Midcap Fund - Growth 26/02 12.66 24.14 12.36 /138 Birla Sun Life India Gen Next 26/02 30.03 23.52 15.64 Fund - Growth /139 ING Global Real Estate Fund - 26/02 13.76 22.5 6.38 Growth /1310 Franklin India Smaller 26/02 16.2 21.92 7 Companies Fund - Growth /1311 Principal Emerging Blue chip 26/02 31.75 21.78 30.88 Fund - Growth /1312 BNP Paribas Mid Cap Fund - 26/02 11.62 21.43 2.23 Growth /1313 Taurus Discovery Fund - 26/02 16.06 21.38 4.84 Growth /1314 DWS Global Agribusiness 26/02 14.42 19.72 14.74 Offshore Fund - Growth /1315 JPMorgan Greater China Equity 26/02 13.85 19.58 10.05 86 86 Offshore Fund /13
TOP 15 FUNDS-PERIOD (LAST 3 YEARS) Scheme Name Date NAV Last 3 Rank Since Inception (Rs.) Years 1 ICICI Prudential FMCG - Growth 26/02 101.62 27.4 18.12 /13 2 SBI Emerg Buss Fund - Growth 26/02 56.37 20.32 22.71 /13 3 SBI Gold Exchange Traded 26/02 2875.7 19.74 19.57 Scheme /13 5 4 R* Shares Gold Exchange Traded 26/02 2743.5 19.7 20.7 Fund - Dividend /13 7 5 UTI Gold Exchange Traded Fund 26/02 2819.1 19.67 20.4 /13 8 6 Kotak Gold ETF 26/02 2817.1 19.65 23.1 /13 8 7 SBI Pharma Fund - Growth 26/02 58.78 19.64 13.85 /13 8 GS Gold BeES 26/02 2807.4 19.48 19.96 /13 3 9 Quantum Gold Exchange Traded 26/02 1402.2 19.41 18.72 Fund - Growth /13 4 10 ING Global Real Estate Fund - 26/02 13.76 16.01 6.38 Growth /13 11 L&T Global Real Assets Fund - 26/02 15.61 15.99 16.28 Growth /13 12 Birla Sun Life India Gen Next 26/02 30.03 15.86 15.64 Fund - Growth /13 13 Escorts Income Bond - Growth 26/02 34.52 15.53 8.68 /13 14 ICICI Prudential Technology Fund 26/02 21.6 15.43 6.11 - Growth /13 87 15 Reliance Banking Fund - Growth 26/02 111.27 14.72 27.99 87 /13
TOP 15 FUNDS-PERIOD (LAST 5 YEARS) Scheme Name Date NAV Last 5Rank Since Inception (Rs.) Years 1 Reliance Pharma Fund - 26/02 64.92 22.67 23.88 Growth /13 2 UTI Gold Exchange Traded 26/02 2819. 18.41 20.4 Fund /13 18 3 Kotak Gold ETF 26/02 2817. 18.37 23.1 /13 18 4 GS Gold BeES 26/02 2807. 18.36 19.96 /13 43 5 R* Shares Gold Exchange 26/02 2743. 18.03 20.7 Traded Fund - Dividend /13 57 6 Quantum Gold Exchange 26/02 1402. 17.91 18.72 Traded Fund - Growth /13 24 7 UTI Pharma and Healthcare 26/02 45.2 16.48 11.58 Fund - Growth /13 8 ICICI Prudential FMCG - Growth 26/02101.6 16.01 18.12 /13 2 9 ICICI Prudential Discovery Fund 26/02 24.86 13.88 13.95 - IP- Growth /13 10 UTI Transportation and 26/02 30.15 13.87 13.08 Logistics Fund - Growth /13 11 Birla Sun Life MNC Fund - 26/02 244.9 13.82 18.48 Growth /13 8 12 SBI Pharma Fund - Growth 26/02 58.78 13 13.85 /13 13 UTI MNC Fund - Growth 26/02 69.44 12.97 13.91 /13 14 Reliance Banking Fund - 26/02111.2 12.63 27.99 Growth /13 7 15 ICICI Prudential Discovery Fund 26/02 54.6 12.59 22 - Growth /13 88 88
UTI MF Performance as on 26th Feb, 2013 Scheme Name Performance ( % Return ) Fund Size 30 Days 91 Days 1 Year 3 Year Rs. in Cr. As onUTI - MIS - Advantage Fund - -0.7612 1.2621 8.8597 7.0271 564.65 Jan 31, 2013GrowthUTI - MIS - Advantage Fund - -0.7615 1.2615 8.8606 7.0319 564.65 Jan 31, 2013Flexi DividendUTI - MIS - Advantage Fund- Dir -0.7764 NA NA NA 564.65 Jan 31, 2013- Monthly DividendUTI - MIS - Advantage Fund- -0.8337 1.0443 7.9012 6.1053 564.65 Jan 31, 2013Monthly DividendUTI Balanced Fund - Dividend -4.2278 1.0249 4.3081 4.7996 959.3 Jan 31, 2013UTI Balanced Fund - Growth -4.2276 1.0384 9.1076 6.3859 959.3 Jan 31, 2013UTI Banking Sector Fund - -8.0373 2.612 10.3326 10.6441 402.02 Jan 31, 2013DividendUTI Banking Sector Fund - Growth -8.0372 2.606 10.3118 11.1049 402.02 Jan 31, 2013UTI Bond Fund - Dividend 0.7489 4.33 10.8656 9.0987 1675.92 Jan 31, 2013UTI Bond Fund - Growth 0.7497 4.5491 11.7135 9.8762 1675.92 Jan 31, 2013UTI Childrens Career Balanced -1.3907 1.8812 9.4924 8.1041 2945.26 Jan 31, 2013PlanUTI Childrens Career Balanced -1.3716 NA NA NA 2945.26 Jan 31, 2013Plan-DirUTI Contra Fund - Dividend -8.0575 0.7187 4.0065 -0.4431 150.15 Jan 31, 2013UTI Contra Fund - Growth -8.0571 0.7482 3.9464 -0.4596 150.15 Jan 31, 2013UTI Credit Opportunities Fund - 0.3391 2.1674 NA NA 214.82 Jan 31, 2013DividendUTI Credit Opportunities Fund - 0.3391 2.1674 NA NA 214.82 Jan 31, 2013GrowthUTI CRTS 81 - Dividend -0.8693 1.7998 11.4193 9.8809 342.63 Jan 31, 2013UTI CRTS 81 - Growth -0.8694 1.8006 12.464 10.6568 342.63 Jan 31, 2013UTI Dividend Yield Fund - -5.1686 1.1681 3.493 7.408 3627.98 Jan 31, 2013DividendUTI Dividend Yield Fund - Growth -5.1691 1.1731 3.515 7.4416 3627.98 Jan 31, 2013UTI Dynamic Bond Fund - Dividend 0.6213 3.2549 9.3644 NA 992.09 Jan 31, 2013UTI Dynamic Bond Fund - Growth 0.6221 3.2543 10.3418 NA 992.09 89 31, 2013 Jan 89UTI Energy Fund - Dividend -8.5001 -1.7816 -7.886 -5.5012 302.01 Jan 31, 2013UTI Energy Fund - Growth -8.5003 -1.7819 -7.9968 -5.5316 302.01 Jan 31, 2013
UTI Equity Fund - Dividend -2.1094 4.07 13.336 10.3225 2389.61 Jan 31, 2013UTI Equity Fund - Growth -4.6074 1.3835 10.4092 9.3594 2389.61 Jan 31, 2013UTI Equity Tax Savings Plan - -4.4033 1.4497 8.2194 4.9128 475.96 Jan 31, 2013DividendUTI Equity Tax Savings Plan - -4.4035 1.432 8.2551 4.9253 475.96 Jan 31, 2013GrowthUTI Floating Rate Fund - STP - 0.6763 2.1192 8.918 7.7424 1940.66 Jan 31, 2013GrowthUTI Floating Rate Fund - STP - 0.4232 1.8624 8.4717 7.5355 1940.66 Jan 31, 2013IP - Flexi DividendUTI Floating Rate Fund - STP - 0.6763 2.1192 9.5795 8.5093 1940.66 Jan 31, 2013IP - GrowthUTI G-Sec Fund - STP - Dividend 0.6318 2.5129 7.7421 6.3297 13.76 Jan 31, 2013UTI G-Sec Fund - STP - Growth 0.6307 2.5118 8.7063 6.8255 13.76 Jan 31, 2013UTI Gilt Advantage Fund - L T - 1.0209 5.379 10.3434 8.1522 212.56 Jan 31, 2013PF Plan - DividendUTI Gilt Advantage Fund - L T - 1.0208 5.3796 11.007 8.6578 212.56 Jan 31, 2013PF Plan - GrowthUTI Gilt Advantage Fund - L T P 1.0208 5.3793 11.0068 8.6589 212.56 Jan 31, 2013- DividendUTI Gilt Advantage Fund - L T P 1.021 5.3793 11.0062 8.6573 212.56 Jan 31, 2013- GrowthUTI Gold ETF -3.9511 -9.4018 2.2051 19.6731 736.02 Jan 31, 2013UTI India Lifestyle Fund - -4.2744 0.904 12.2616 11.7703 358.57 Jan 31, 2013DividendUTI India Lifestyle Fund - Growth -4.2744 0.9047 12.2625 11.7706 358.57 Jan 31, 2013UTI Infrastructure Fund - -8.353 -2.2354 -2.1571 -6.338 1806.12 Jan 31, 2013DividendUTI Infrastructure Fund - Growth -8.3534 -2.2203 -2.1339 -6.2752 1806.12 Jan 31, 2013UTI Leadership Equity Fund - -5.4992 2.4209 10.2229 5.0069 620.15 Jan 31, 2013DividendUTI Leadership Equity Fund - -5.4993 2.4024 10.1916 4.9459 620.15 Jan 31, 2013GrowthUTI Liquid Fund - Cash Plan - IP 0.6931 2.1043 9.3709 8.1985 12858.84 Jan 31, 2013- GrowthUTI Liquid Fund - Cash Plan - IP 0.5423 1.6439 7.2759 6.4202 12858.84 Jan 31, 2013- Monthly DividendUTI Liquid Fund - Cash Plan - Reg 0.6389 1.9357 8.7062 7.5976 12858.84 90 31, 2013 Jan- Growth 90UTI Liquid Fund - Cash Plan - Reg 0.5299 1.6001 7.2496 6.2614 12858.84 Jan 31, 2013- Monthly Div
UTI Mahila Unit Scheme - -1.1039 1.0036 6.7611 5.9317 231.41 Jan 31, 2013DividendUTI Mahila Unit Scheme - Growth -1.1039 1.0036 6.7616 5.9317 231.41 Jan 31, 2013UTI Master Value Fund - Dividend -6.8359 -2.5636 2.9595 6.4766 633.47 Jan 31, 2013UTI Master Value Fund - Growth -6.836 -2.5628 2.9646 6.6306 633.47 Jan 31, 2013UTI Mastershare - Dividend -4.5733 1.3504 6.234 6.0546 2375.71 Jan 31, 2013UTI Mastershare - Growth -4.573 1.3609 6.9982 6.3802 2375.71 Jan 31, 2013UTI Mid Cap Fund - Dividend -6.4354 -3.6418 11.0938 6.2721 285.95 Jan 31, 2013UTI Mid Cap Fund - Growth -6.4354 -3.6436 11.0994 6.2685 285.95 Jan 31, 2013UTI MNC Fund - Dividend -3.4882 -2.0667 7.4881 13.8452 255.87 Jan 31, 2013UTI MNC Fund - Growth -3.4882 -2.0714 7.4143 13.8094 255.87 Jan 31, 2013UTI Money Market - IP - Growth 0.7022 2.1231 9.4264 8.2431 2418.7 Jan 31, 2013UTI Money Market - Ret - Flexi 0.2326 1.5373 7.5527 6.6336 2418.7 Jan 31, 2013DividendUTI Money Market - Ret - 0.6481 1.9581 8.7993 7.6917 2418.7 Jan 31, 2013GrowthUTI Money Market - Ret - Perd 0.2327 1.5373 7.5503 6.6112 2418.7 Jan 31, 2013DividendUTI Monthly Income Scheme - -0.4824 1.6081 7.2783 6.2806 318.48 Jan 31, 2013DividendUTI Monthly Income Scheme - -0.4013 1.8521 8.3208 7.2683 318.48 Jan 31, 2013GrowthUTI Nifty Fund - Dividend -5.2944 1.8295 6.4646 5.3599 177.49 Jan 31, 2013UTI Nifty Fund - Growth -5.2941 1.8284 6.4692 5.3668 177.49 Jan 31, 2013UTI Opportunities Fund -Dividend -4.7911 -0.653 6.9369 10.2218 3580.48 Jan 31, 2013UTI Opportunities Fund - Growth -4.7908 -0.6644 7.0106 10.3731 3580.48 Jan 31, 2013UTI Pharma and Healthcare Fund -2.6047 0.1858 15.3893 13.3624 103.87 Jan 31, 2013- DividendUTI Pharma and Healthcare Fund -2.605 0.1598 15.4112 13.4932 103.87 Jan 31, 2013- GrowthUTI Services Industries Fund - -2.2966 4.1375 11.0688 6.6018 220.73 Jan 31, 2013DividendUTI Services Industries Fund - -2.2964 4.144 11.0567 6.5905 220.73 Jan 31, 2013Growth 91 91UTI Short Term Income Fund - 0.6516 2.6532 9.7926 8.3212 2270.77 Jan 31, 2013Ret - DividendUTI Short Term Income Fund - 0.6517 2.8288 10.5024 8.905 2270.77 Jan 31, 2013