Mutual Funds-mahindra Finance

8/6/2019 Mutual Funds-mahindra Finance

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CHAPTER-1

INTRODUCTION TO MUTUAL FUNDS

Mutual Funds are investment institutions set up to manage money pooled in from the public. The

advantages of investing in Mutual Funds are the professional expertise they employ coupled with

the variations offered on the basis of asset classification and the diversification of the chosen

portfolio aimed at optimizing the risk for the required return.

The benefits that can be accrued from Mutual Funds are

The schemes could be added to the portfolio with online updates for monitoring the

performance of your investments in Mutual Funds.

The comprehensive search, which gets you the fund matching your criteria.

The comparison of various schemes of different Mutual Funds based on the critical and

most sought after investment criteria.

The analysis of different schemes and the outlook for the same.

List of new launches in the market provided continuously.

Basically, Mutual funds are trusts that are formed to mobilize the savings from the people and

pool them together to invest within the securities markets. The main advantage of mutual funds

is that it is professionally managed. And the general idea is for investors to contribute small


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amounts into units in the various schemes, which in turn is deployed in the various markets. This

way, any investor who is not in a position to directly invest in the markets can take advantage of

this route.

UTI is the oldest of Indian mutual funds, having entered the arena with the launch of the Unit

Scheme - 64 in 1964, hence the alphanumeric name. It was only in 1998 that other public sector

banks were allowed to enter into the segment which was followed by a whole range of Asset

Management companies including almost all the leading international portfolio managers

including Merrill Lynch, Templeton, and Prudential among others.

There are several different ways one can diversify a portfolio, such as the different categories of

the Morningstarstyle box, which contain several different asset classes. But another common

way to diversify is between the various sectorsof the economy. This is usually accomplished

with mutual funds that concentrate in one of the major sectors, such as natural resources or

utilities. This article will examine the nature and composition ofsector fundsand the advantages

and disadvantages that they present to investors.
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OBIECTIVES

1. PRIMARY OBJECTIVE

1. TO know about the current Mutual funds available in India

2. SECONDARY OBJECTIVE

1. TO know how mutual funds are investing the funds in different sector

2. To suggest the investor about which mutual fund should be invest in better sector

3. To study the benefits of investing in different Mutual funds

4. To know how to invest in mutual funds


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CHAPTER-2

METHODLOGY

A Research work requires a lot of information to be gathered. This information can be gathered

through 2 sources.

1. Primary source of data collection: In this method, we collect the data for the first

time i.e., first hand information through surveys, observations etc.,

2. Secondary source of data collection: In this method , we collect the information

which is readily available. The present project work is depending on secondary

sources of information gathering.

1. DATA COLLECTION

In the present project work the data as been collected from readily available source

that is secondary data like websites newspapers and magazines the sample size taken for study 5

companies


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THE WEB SITE VISITED

1. WWW.AMFI.COM.

2. MONEY.REDIFF.COM.

2. DATA ANALYSIS

The present project work as been analyzed using time series analysis with graphical

presentation the formula applied in the calculation or as follows

FOR MUTUAL FUNDS

NAV RETURNS

1. AVG RETURNS=ri/n

2. RISK RETURNS=

NEED AND SCOPE

At the present trend in mutual funds investor are investing in different sectors .it is a

good advantage for the investors and also benefit for the investors and investor can reduce risk


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in mutual fund. In the sectorial funds we have diversified companies and sectors funds of bank

.the investor must choose and invest the funds in the different sectors and the companies the

finance manager as to suggest the investor there is no relationship between the funds. You can

invest in any funds

Now a days good scope is their for the mutual funds .the financial managers as to

decide whether he as to invest in share stock, bonds and sectors to get the more benefits for funds

so invest in good profitability sector. Then the financial manager can reduce the risk from the

investors. The scope of study is confirmed to the sectorial funds available in India mutual fund

market


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LIMITATIONS :

The following are the limitations of the study.

The study is based on the secondary data which is available from various websites.

The study is limited to only 10 securities.

The time taken to undertake the project work is very short; hence only 10securities were

chosen for the study.

CHAPTER-3


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LITERATURE SURVEY

UNDERSTANDING MUTUAL FUND

Mutual fund is a trust that pools money from a group of investors (sharing common financial

goals) and invest the money thus collected into asset classes that match the stated investment

objectives of the scheme. Since the stated investment objectives of a mutual fund scheme

generally form the basis for an investor's decision to contribute money to the pool, a mutual fund

can not deviate from its stated objectives at any point of time.

Every Mutual Fund is managed by a fund manager, who using his investment management skills

and necessary research works ensures much better return than what an investor can manage on

his own. The capital appreciation and other incomes earned from these investments are passed on

to the investors (also known as unit holders) in proportion of the number of units they own.


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When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets

of the fund in the same proportion as his contribution amount put up with the corpus (the total

amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit

holder.

Any change in the value of the investments made into capital market instruments (such as shares,

debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the

market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is

calculated by dividing the market value of scheme's assets by the total number of units issued to

the investors.


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For example:

A. If the market value of the assets of a fund is Rs. 100,000

B. The total number of units issued to the investors is equal to 10,000.

C. Then the NAV of this scheme = (A)/(B), i.e. 100,000/10,000 or 10.00

D. Now if an investor 'X' owns 5 units of this scheme

E. Then his total contribution to the fund is Rs. 50 (i.e. Number of units held multiplied by the NAV of

the scheme)

ADVANTAGES OF MUTUAL FUND

S.

No.

Advantage Particulars

1.Portfolio

Diversification

Mutual Funds invest in a well-diversified portfolio of securities which

enables investor to hold a diversified investment portfolio (whether the

amount of investment is big or small).

2.

Professional

Management

Fund manager undergoes through various research works and has better

investment management skills which ensure higher returns to the investor

than what he can manage on his own.

3. Less Risk

Investors acquire a diversified portfolio of securities even with a small

investment in a Mutual Fund. The risk in a diversified portfolio is lesser than

investing in merely 2 or 3 securities.

4. Low

Transaction

Due to the economies of scale (benefits of larger volumes), mutual funds pay

lesser transaction costs. These benefits are passed on to the investors.


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Costs

5. Liquidity

An investor may not be able to sell some of the shares held by him very

easily and quickly, whereas units of a mutual fund are far more liquid.

6.

Choice of

Schemes

Mutual funds provide investors with various schemes with different

investment objectives. Investors have the option of investing in a scheme

having a correlation between its investment objectives and their own

financial goals. These schemes further have different plans/options

7. Transparency

Funds provide investors with updated information pertaining to the markets

and the schemes. All material facts are disclosed to investors as required by

the regulator.

8. Flexibility

Investors also benefit from the convenience and flexibility offered by Mutual

Funds. Investors can switch their holdings from a debt scheme to an equity

scheme and vice-versa. Option of systematic (at regular intervals) investment

and withdrawal is also offered to the investors in most open-end schemes.

9. Safety

Mutual Fund industry is part of a well-regulated investment environment

where the interests of the investors are protected by the regulator. All funds

are registered with SEBI and complete transparency is forced.


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DISADVANTAGES OF MUTUAL FUND

S.

No.Disadvantage Particulars

1.

Costs Control

Not in the

Hands of an

Investor

Investor has to pay investment management

fees and fund distribution costs as a

percentage of the value of his investments

(as long as he holds the units), irrespective of

the performance of the fund.

2.

No Customized

Portfolios

The portfolio of securities in which a fund

invests is a decision taken by the fund

manager. Investors have no right to interfere

in the decision making process of a fund

manager, which some investors find as a

constraint in achieving their financial

objectives.

3.

Difficulty in

Selecting a

Suitable Fund

Scheme

Many investors find it difficult to select one

option from the plethora of

funds/schemes/plans available. For this, they

may have to take advice from financial

planners in order to invest in the right fund to

achieve their objectives.

TYPES OF MUTUAL FUNDS

General Classification of Mutual Funds

Open-end Funds | Closed-end Funds


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Open-end Funds

Funds that can sell and purchase units at any point in time are classified as Open-end Funds. The

fund size (corpus) of an open-end fund is variable (keeps changing) because of continuous

selling (to investors) and repurchases (from the investors) by the fund. An open-end fund is not

required to keep selling new units to the investors at all times but is required to always

repurchase, when an investor wants to sell his units. The NAV of an open-end fund is calculated

every day.

Closed-end Funds

Funds that can sell a fixed number of units only during the New Fund Offer (NFO) period are

known as Closed-end Funds. The corpus of a Closed-end Fund remains unchanged at all times.

After the closure of the offer, buying and redemption of units by the investors directly from the

Funds is not allowed. However, to protect the interests of the investors, SEBI provides investors

with two avenues to liquidate their positions:

1. Closed-end Funds are listed on the stock exchanges where investors can buy/sell units

from/to each other. The trading is generally done at a discount to the NAV of the scheme.

The NAV of a closed-end fund is computed on a weekly basis (updated every Thursday).

2. Closed-end Funds may also offer "buy-back of units" to the unit holders. In this case, the

corpus of the Fund and its outstanding units do get changed.Load Funds | No-load Funds

Load Funds

Mutual Funds incur various expenses on marketing, distribution, advertising, portfolio churning,

fund manager's salary etc. Many funds recover these expenses from the investors in the form of


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load. These funds are known as Load Funds. A load fund may impose following types of loads

on the investors:

Entry Load - Also known as Front-end load, it refers to the load charged to an investor

at the time of his entry into a scheme. Entry load is deducted from the investor's

contribution amount to the fund.

Exit Load - Also known as Back-end load, these charges are imposed on an investor

when he redeems his units (exits from the scheme). Exit load is deducted from the

redemption proceeds to an outgoing investor.

Deferred Load - Deferred load is charged to the scheme over a period of time.

Contingent Deferred Sales Charge (CDSC) - In some schemes, the percentage of exit

load reduces as the investor stays longer with the fund. This type of load is known as

Contingent Deferred Sales Charge.

No-load Funds

All those funds that do not charge any of the above mentioned loads are known as No-load

Funds.

Tax-exempt Funds | Non-Tax-exempt Funds

Tax-exempt Funds

Funds that invest in securities free from tax are known as Tax-exempt Funds. All open-end

equity oriented funds are exempt from distribution tax (tax for distributing income to investors).

Long term capital gains and dividend income in the hands of investors are tax-free.

Non-Tax-exempt Funds

Funds that invest in taxable securities are known as Non-Tax-exempt Funds. In India, all funds,


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except open-end equity oriented funds are liable to pay tax on distribution income. Profits arising

out of sale of units by an investor within 12 months of purchase are categorized as short-term

capital gains, which are taxable. Sale of units of an equity oriented fund is subject to Securities

Transaction Tax (STT). STT is deducted from the redemption proceeds to an investor.

BROAD MUTUAL FUND TYPES


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1. Equity Funds

Equity funds are considered to be the more risky funds as compared to other fund types, but they

also provide higher returns than other funds. It is advisable that an investor looking to invest in

an equity fund should invest for long term i.e. for 3 years or more. There are different types of

equity funds each falling into different risk bracket. In the order of decreasing risk level, there

are following types of equity funds:

a. Aggressive Growth Funds - In Aggressive Growth Funds, fund managers aspire for

maximum capital appreciation and invest in less researched shares of speculative nature.

Because of these speculative investments Aggressive Growth Funds become more volatile

and thus, are prone to higher risk than other equity funds.

b. Growth Funds - Growth Funds also invest for capital appreciation (with time horizon of

3 to 5 years) but they are different from Aggressive Growth Funds in the sense that they

invest in companies that are expected to outperform the market in the future. Without

entirely adopting speculative strategies, Growth Funds invest in those companies that are

expected to post above average earnings in the future.

c. Speciality Funds - Speciality Funds have stated criteria for investments and their

portfolio comprises of only those companies that meet their criteria. Criteria for some

speciality funds could be to invest/not to invest in particular regions/companies. Speciality

funds are concentrated and thus, are comparatively riskier than diversified funds.. There


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are following types of speciality funds:

i. Sector Funds: Equity funds that invest in a particular sector/industry of the

market are known as Sector Funds. The exposure of these funds is limited to a

particular sector (say Information Technology, Auto, Banking, Pharmaceuticals or

Fast Moving Consumer Goods) which is why they are more risky than equity

funds that invest in multiple sectors.

ii. Foreign Securities Funds: Foreign Securities Equity Funds have the option to

invest in one or more foreign companies. Foreign securities funds achieve

international diversification and hence they are less risky than sector funds.

However, foreign securities funds are exposed to foreign exchange rate risk and

country risk.

iii. Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower

market capitalization than large capitalization companies are called Mid-Cap or

Small-Cap Funds. Market capitalization of Mid-Cap companies is less than that of

big, blue chip companies (less than Rs. 2500 crores but more than Rs. 500 crores)

and Small-Cap companies have market capitalization of less than Rs. 500 crores.

Market Capitalization of a company can be calculated by multiplying the market

price of the company's share by the total number of its outstanding shares in the

market. The shares of Mid-Cap or Small-Cap Companies are not as liquid as of

Large-Cap Companies which gives rise to volatility in share prices of these

companies and consequently, investment gets risky.

iv. Option Income Funds*: While not yet available in India, Option Income Funds

write options on a large fraction of their portfolio. Proper use of options can help


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to reduce volatility, which is otherwise considered as a risky instrument. These

funds invest in big, high dividend yielding companies, and then sell options

against their stock positions, which generate stable income for investors.

d.

e. Diversified Equity Funds - Except for a small portion of investment in liquid money

market, diversified equity funds invest mainly in equities without any concentration on a

particular sector(s). These funds are well diversified and reduce sector-specific or

company-specific risk. However, like all other funds diversified equity funds too are

exposed to equity market risk. One prominent type of diversified equity fund in India is

Equity Linked Savings Schemes (ELSS). As per the mandate, a minimum of 90% of

investments by ELSS should be in equities at all times. ELSS investors are eligible to

claim deduction from taxable income (up to Rs 1 lakh) at the time of filing the income tax

return. ELSS usually has a lock-in period and in case of any redemption by the investor

before the expiry of the lock-in period makes him liable to pay income tax on such

income(s) for which he may have received any tax exemption(s) in the past.

f. Equity Index Funds - Equity Index Funds have the objective to match the performance

of a specific stock market index. The portfolio of these funds comprises of the same

companies that form the index and is constituted in the same proportion as the index.

Equity index funds that follow broad indices (like S&P CNX Nifty, Sensex) are less risky

than equity index funds that follow narrow sectoral indices (like BSEBANKEX or CNX

Bank Index etc). Narrow indices are less diversified and therefore, are more risky.

g. Value Funds - Value Funds invest in those companies that have sound fundamentals and

whose share prices are currently under-valued. The portfolio of these funds comprises of


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shares that are trading at a low Price to Earning Ratio (Market Price per Share / Earning

per Share) and a low Market to Book Value (Fundamental Value) Ratio. Value Funds may

select companies from diversified sectors and are exposed to lower risk level as compared

to growth funds or speciality funds. Value stocks are generally from cyclical industries

(such as cement, steel, sugar etc.) which make them volatile in the short-term. Therefore,

it is advisable to invest in Value funds with a long-term time horizon as risk in the long

term, to a large extent, is reduced.

h. Equity Income or Dividend Yield Funds - The objective of Equity Income or Dividend

Yield Equity Funds is to generate high recurring income and steady capital appreciation

for investors by investing in those companies which issue high dividends (such as Power

or Utility companies whose share prices fluctuate comparatively lesser than other

companies' share prices). Equity Income or Dividend Yield Equity Funds are generally

exposed to the lowest risk level as compared to other equity funds.

2. Debt / Income Funds

Funds that invest in medium to long-term debt instruments issued by private

companies, banks, financial institutions, governments and other entities belonging

to various sectors (like infrastructure companies etc.) are known as Debt / Income

Funds. Debt funds are low risk profile funds that seek to generate fixed current

income (and not capital appreciation) to investors. In order to ensure regular

income to investors, debt (or income) funds distribute large fraction of their surplus

to investors. Although debt securities are generally less risky than equities, they are

subject to credit risk (risk of default) by the issuer at the time of interest or principal

payment. To minimize the risk of default, debt funds usually invest in securities

from issuers who are rated by credit rating agencies and are considered to be of


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"Investment Grade". Debt funds that target high returns are more risky. Based on

different investment objectives, there can be following types of debt funds:

a. Diversified Debt Funds - Debt funds that invest in all securities issued by entities

belonging to all sectors of the market are known as diversified debt funds. The best

feature of diversified debt funds is that investments are properly diversified into all sectors

which results in risk reduction. Any loss incurred, on account of default by a debt issuer,

is shared by all investors which further reduces risk for an individual investor.

b. Focused Debt Funds* - Unlike diversified debt funds, focused debt funds are narrow

focus funds that are confined to investments in selective debt securities, issued by

companies of a specific sector or industry or origin. Some examples of focused debt funds

are sector, specialized and offshore debt funds, funds that invest only in Tax Free

Infrastructure or Municipal Bonds. Because of their narrow orientation, focused debt

funds are more risky as compared to diversified debt funds. Although not yet available in

India, these funds are conceivable and may be offered to investors very soon.

c. High Yield Debt funds - As we now understand that risk of default is present in all debt

funds, and therefore, debt funds generally try to minimize the risk of default by investing

in securities issued by only those borrowers who are considered to be of "investment

grade". But, High Yield Debt Funds adopt a different strategy and prefer securities issued

by those issuers who are considered to be of "below investment grade". The motive

behind adopting this sort of risky strategy is to earn higher interest returns from these

issuers. These funds are more volatile and bear higher default risk, although they may

earn at times higher returns for investors.


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d. Assured Return Funds - Although it is not necessary that a fund will meet its objectives

or provide assured returns to investors, but there can be funds that come with a lock-in

period and offer assurance of annual returns to investors during the lock-in period. Any

shortfall in returns is suffered by the sponsors or the Asset Management Companies

(AMCs). These funds are generally debt funds and provide investors with a low-risk

investment opportunity. However, the security of investments depends upon the net worth

of the guarantor (whose name is specified in advance on the offer document). To

safeguard the interests of investors, SEBI permits only those funds to offer assured return

schemes whose sponsors have adequate net-worth to guarantee returns in the future. In the

past, UTI had offered assured return schemes (i.e. Monthly Income Plans of UTI) that

assured specified returns to investors in the future. UTI was not able to fulfill its promises

and faced large shortfalls in returns. Eventually, government had to intervene and took

over UTI's payment obligations on itself. Currently, no AMC in India offers assured

return schemes to investors, though possible.

e. Fixed Term Plan Series - Fixed Term Plan Series usually are closed-end schemes having

short term maturity period (of less than one year) that offer a series of plans and issue

units to investors at regular intervals. Unlike closed-end funds, fixed term plans are not

listed on the exchanges. Fixed term plan series usually invest in debt / income schemes

and target short-term investors. The objective of fixed term plan schemes is to gratify

investors by generating some expected returns in a short period.

COMPANY PROFILE


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OVERVIEW

Mahindra embarked on its journey in 1945 by assembling the

Willys Jeep in India and is now a US $7.1 billion Indian

multinational. It employs over 1,00,000 people across the

globe and enjoys a leadership position in utility vehicles,

tractors and information technology, with a significant and

growing presence in financial services, tourism, infrastructure

development, trade and logistics. The Mahindra Group today is

an embodiment of global excellence and enjoys a strong

corporate brand image.

Mahindra is the only Indian company among the top tractor

brands in the world. It is today a full-range player with a

presence in almost every segment of the automobile industry,

from two-wheelers to CVs, UVs, SUVs and sedan. Mahindra

recently acquired a majority stake in REVA Electric Car Co Ltd.

(now called Mahindra REVA), strengthening its position in the

Electric Vehicles domain.

The Mahindra Group expanded its IT portfolio when Tech

Mahindra acquired the leading global business and

information technology services company, Satyam Computer

Services. The company is now known as Mahindra Satyam.


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Mahindra is also one of the few Indian companies to receive

an A+ GRI checked rating for its first Sustainability Report for

the year 2007-08 and has also received the A+ GRI rating for

the year 2008- 09.

HISTORY


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Few groups can identify as closely with India's

destiny and industrial progress as the

Mahindra Group. In fact, Mahindra is like a

microcosm of India. Both were born around the

same time, had the same aspirations and both

experienced the inevitable troughs

and crests in the journey towards their goals. And both

continue to march on the path to progress and global

recognition.

The birth of Mahindra & Mahindra began

when K.C. Mahindra visited the United States

of America as Chairman of the India Supply

Mission. He met Barney Roos, inventor of the

rugged 'general purpose vehicle' or Jeep and

had a flash of inspiration: wouldn't a

vehicle that had proved its invincibility on the battlefields of

World War II be ideal for India's rugged terrain and its kutcha

rural roads?

Swift action followed this thought. The Mahindra brothers

joined hands with a distinguished gentleman called Ghulam


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Mohammed & on October 2nd, 1945, Mahindra & Mohammed

was set up as a franchise for assembling Jeeps from Willys,

USA.

Two years later, India became an independent nation and

Mahindra & Mohammed changed its name to Mahindra &

Mahindra. Ghulam Mohammed migrated to Pakistan post-

partition and became the first Finance Minister of Pakistan.

Since then, Mahindra & Mahindra has grown steadily in size

and stature and evolved into a Group that occupies a premier

position in almost all key sectors of the economy. The Group's

history is studded with milestones. Each one taking the Group

forward. In fact, today, its total turnover is about 6.3 billion

dollars.

Mahindra is a group in a hurry, engaged in an ambitious,

sustained and prolonged penetration into the global arena. Its

spirit can be encapsulated in the words of the poet Robert

Frost, a favourite of India's first Prime Minister, Pandit

Jawaharlal Nehru:

"The woods are lovely, dark and deep,

But I have promises to keep,

And miles to go before I sleep,


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And miles to go before I sleep."

For Mahindra & Mahindra, this translates into many more

milestones to be set up before it rests. If ever.

BOARDS OF DIRECTORS

The Board of Directors of the Company has, as its members,

eminent persons from Industry, Finance, Investment and other

branches of business, who bring diverse experience and

expertise to the Board.

The Company's current Board of Directors is as follows:

NAME DESIGNATION

1. Mr. Keshub

Mahindra

Chairman

2. Mr. Anand G.

Mahindra

Vice Chairman and

Managing Director
http://www.mahindra.com/OurGroup/management_bod.html#kushubmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#kushubmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#anandmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#anandmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#kushubmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#kushubmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#anandmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#anandmahindra


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3. Deepak Shantilal

Parekh

Director

4. Nadir Burjorji

Godrej

Director

5. M. M. Murugappan Director

6. Bharat Narotam

Doshi

Executive Director &

Group Chief Financial

Officer (Group CFO)

7. Arun Kumar Nanda Executive Director

8. Narayanan Vaghul Director

9. Dr. Ashok Sekhar

Ganguly

Director

10. R. K. Kulkarni Director

11. Anupam Pradip

Puri

Director
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12. Arun Kanti

Dasgupta

Nominee of LIC

MAHENDRA FINANCE

The US $6.7 billion Mahindra Group is among the top ten industrial

houses in India and is the only Indian company among the top

three tractor manufacturers in the world. The Mahindra group has,

over the years, established a significant presence in all the crucial

sectors of the Indian economy. Consistently setting new

standards, it is now considered to be one of the key performers of

the country.

The company was originally set up in 1945 as Mahindra &

Mohammed. Later, after the partition of India, Ghulam Mohammad

returned to Pakistan and became the nation's first finance

minister. Hence the name was changed from Mahindra &

Mohammed to Mahindra & Mahindra in 1948.

While retaining its core values of introducing rural India to

technological advancements, the company has steadilytransformed itself into a group that caters to the Indian and

overseas markets with a presence in various business sectors:

Automotive, Farm Equipment, Financial Services, Systech, After-

Market, Information Technology, Specialty Business, Infrastructure
http://www.mahindra.com/OurGroup/management_bod.html#thomosmathewhttp://www.mahindra.com/OurGroup/management_bod.html#thomosmathewhttp://www.mahindra.com/OurGroup/management_bod.html#thomosmathewhttp://www.mahindra.com/OurGroup/management_bod.html#thomosmathew


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Development, Trade, Retail and Logistics.

Steered by Chairman Keshub Mahindra and Managing Director

Anand Mahindra, Mahindra & Mahindra has constantly grown in

size and stature and evolved into a group that occupies premier

position in almost all the sectors in which they operate. Making

state-of-the-art technology an accessible and affordable

commodity is what takes the company from strength to strength

with every passing year.

With over 62 years of manufacturing experience, the Mahindra

Group has built a strong base in technology, engineering,

marketing and distribution which are vital to its evolution as a

customer-centric organisation. The group employs over 75,000

people and has several state-of-the-art facilities in India and

overseas.

The US $6.7 billion Mahindra Group is among the top ten industrial

houses in India and is the only Indian company among the top

three tractor manufacturers in the world. The Mahindra group has,

over the years, established a significant presence in all the crucial

sectors of the Indian economy. Consistently setting new

standards, it is now considered to be one of the key performers of

the country.

The company was originally set up in 1945 as Mahindra &

Mohammed. Later, after the partition of India, Ghulam Mohammad


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returned to Pakistan and became the nation's first finance

minister. Hence the name was changed from Mahindra &

Mohammed to Mahindra & Mahindra in 1948.

While retaining its core values of introducing rural India to

technological advancements, the company has steadily

transformed itself into a group that caters to the Indian and

overseas markets with a presence in various business sectors:

Automotive, Farm Equipment, Financial Services, Systech, After-Market, Information Technology, Specialty Business, Infrastructure

Development, Trade, Retail and Logistics.

Steered by Chairman Keshub Mahindra and Managing Director

Anand Mahindra, Mahindra & Mahindra has constantly grown in

size and stature and evolved into a group that occupies premier

position in almost all the sectors in which they operate. Making

state-of-the-art technology an accessible and affordable

commodity is what takes the company from strength to strength

with every passing year.

With over 62 years of manufacturing experience, the Mahindra

Group has built a strong base in technology, engineering,

marketing and distribution which are vital to its evolution as a

customer-centric organisation. The group employs over 75,000

people and has several state-of-the-art facilities in India and

overseas.


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FINANCIAL SERVICES

Finance is a major impetus for

the growth of automotive

products and this led to the

Groups foray into financial

services through Mahindra

Finance and its subsidiary.

Together, a cluster of these

companies forms the Trade

and Financial Services Sector

of the Mahindra Group.

Mahindra & Mahindra Financial Services Ltd (Mahindra

Finance) is one of 's leading non-banking finance companies

focused on providing finance for utility vehicles, tractors and

cars in the rural and semi-urban sector. Mahindra Finance

currently has the largest network of over 436 branches . It

has entered into more than 600,000 customer contracts and

has disbursements of around Rs. 21000crore since inception.

Mahindra Insurance Brokers, a wholly owned subsidiary of

Mahindra Finance, is one of the few insurance broking


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companies in to receive the ISO 9001:2000 Certification for

Quality Management Systems. It provides direct insurance

broking for retail and corporate customers with a wide and

comprehensive range of plans for Life and Non-life Insurance

segments. Under the Non-life Insurance category, Personal,

Industrial, Commercial, Social and Liability products are

available.

Mahindra Rural Housing Finance Ltd (MRHFL) is a

wholly owned subsidiary of Mahindra & Mahindra Financial

Services (MMFSL). It has been recently set up with an

objective of meeting the housing finance needs of the

rural/semi urban customers across the country.

Mahindra Finance About MMFSL

Mahindra and Mahindra Financial

Services Limited is one of Indiasleading non-banking finance companies.

Through a vast network of branches, we

provide personalized finance for the

widest range of utility vehicles, tractors


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and cars, focusing on the rural and semi-

urban sector.

MMFSLs rural financing is considered as the cornerstone of

poverty reduction, rural development and inclusive growth in

many parts of the country. With a majority of our countys

population living in rural India, our loans to over 900,000

customers belonging to the low income groups have proved to

be a catalyst in helping rural India surge ahead in a big way.

Our unique business model is socially inclusive as we help

customers who are at the bottom of the income or social

pyramids to grow by providing them loans based on their future

earning capacities. It is also our continuous endeavor to develop

skill sets at the local level. We currently provide employment to

over 6200 people who belong to the areas in which we serve,ensuring that our employees truly understand their customers.

Since 1945, we, at the Mahindra Group, have remained and will

continue to remain partners in the progress of rural India,

through both growth and turbulence. We salute the spirit of

every Indian living off the land and move ahead, trying to

understand the financial needs of rural India and tapping into

this vast market of unbounded opportunities.

Our goal is to be the preferred provider of retail financing

services in the rural and semi-urban areas of India, while our


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strategy is o provide a range of financial products and services

to our customers through our nationwide distribution network.

Our Vision

To be leading financial services provider in semi-urban and

rural India

MAHENDRA INSURANCE BROAKERS

* Legal Entity Mahindra & Mahindra Financial Services Limited

Overview


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Mahindra Insurance Brokers Ltd. is

one of the few insurance broking

companies in India who have been

awarded the prestigious ISO

9001:2000 Certification for Quality

Management Systems. MIBLs aim is

to play a predominant role in the

insurance broking industry in India

while focusing on providing innovative

solutions, greater value to customers,superior

quality of service and professional manpower

keeping in mind the spirit of social responsibility.

Committed to maintaining a high standard of

excellence, MIBL has empanelled itself with variouspublic and private insurance companies to offer

highly customised solutions to its customers. A

determined, dynamic and highly competitive

insurance broking company, MIBLs core asset is the

delivery of timely and cost-effective insurance

solutions.

MIBL was granted a Direct Broker License by the

Insurance Regulatory and Development Authority

(IRDA) on May 2004 for undertaking direct insurance


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broking in Life and Non-Life businesses.

MIBL undertakes direct insurance broking business,

both in the Life and Non-Life insurance segments

with a focus on Retail and Commercial lines of

businesses.

Our Vision:

To be among Indias leading Insurance Brokers.

Mutual Funds-mahindra Finance

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