Salman Project
Transcript of Salman Project
A PROJECT REPORT
ON
“INVESTORS PERCEPTION TOWARDS MUTUAL FUND FOR GROWTH”
OF
A PROJECT REPORT SUBMITTED TO
INDIRA INSTITUTE OF MANAGEMENT, PUNE
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE COURSE OF
(MMM)
MASTER OF MARKETING MANAGEMENT
(UNIVERSITY OF PUNE)
SUBMITTED BY: SUBMITTED TO:
SALMAN DANISH PROF. SANTOSH PULLEWAR
(2009 – 2011) (INTERNAL GUIDE)
IIMP
1
CERTIFICATE
This is to certify that Mr. SALMAN DANISH, student of Master of Marketing Management [MMM] in Indira Institute of Management, Pune has successfully completed his Summer Training under DSP Black Rock Investment Managers Pvt. Ltd. under the guidance of Mr. SANTOSH PULLEWAR (Internal Project Guide).
Project Guide,
Mr. SANTOSH PULLEWAR
(Professor)
…………………………………………
2
DECLARATION
I hereby declare to all my concerned that the project report compiled in the
following pages is based on an original & primary work conducted by me & no
other report has been duplicated from any other report.
This report will submitted to Indira Institute of Management, Pune & Pune
University for the award of Master Degree certificates.
Place: Varanasi SALMAN DANISH
3
ACKNOWLEDGEMENT
Firstly I must thank the DSP BLACKROCK INVESTMENT
MANAGERS Pvt. Ltd. Co., who give me an opportunity and instrument to
work on this project. This project could not have been completed without the
support of my seniors and friends.
I owe my heartiest thanks to my course co-ordinator Mrs. Poornima Tapas,
my internal project guide Mr. SANTOSH PULLEWAR and other faculty
members who have suggested me to work with this project.
And a tone of thanks to Mr. Gurmit Singh Khanna (Assistant Sales
Manager) under whose guidance I was successfully able to complete this
project. I am also thankful to my team members for their co-operation during
the project period.
Special thanks to Mr. Manish Sinha (Assistant Vice-President & Sales head
of U.P) who has provided the opportunity to work with this company and get
experience of AMC (Asset Management Co.)
SALMAN DANISH
4
EXECUTIVE SUMMARY
A Mutual Fund is a pool of money or collection of stocks, bonds, or other securities owned
by a group of investors and managed by a fund manager’s professional investment company.
For an individual investor to have a diversified portfolio is difficult. But he can approach to
such company and can invest into shares.
DSP Black Rock Mutual funds perform a crucial task as efficient alligators of resources in
such a transitional period. The process of liberalization and restructuring of the Indian
economy has further created necessity for efficient allocation of resources. In this process of
development, mutual funds have emerged as strong financial intermediaries and are playing
an important role in bringing stability to the financial system and efficiency to the resource
allocation process.
Mutual funds have become very popular since they make individual investors to invest in
equity and debt securities easy. When investors invest a particular amount in mutual funds, he
becomes the unit holder of corresponding units. In turn, mutual funds invest unit holder’s
money in stocks, bonds or other securities that earn interest or dividend. This money is
distributed to unit holders. If the fund gets money by selling some stocks at higher price the
unit holders also are liable to get capital gains.
There are some points which is to be observed by authorized person of sector:-
1- Awareness level of the Mutual Fund industry should be increased.
2- Awareness level of the DSP Black Rock Mutual Fund should also be increased to
increase the number of investors.
3- The company should try to enter in banking sector to get the desired investors easily.
5
This study focused on Varanasi region. In this I have covered almost all the places of
Varanasi, to empanelment of more and more number of ARN (Amfi Registration No.)
holders with DSP Black Rock Pvt.Ltd., to know about the perception in the mind of investors
for this Co. and convinced investors for SIP (Systematic Investment Plan) of DSP Black
Rock MF. Being constraints by data availability (both primary and secondary) and time and
improper response from the respondents I have covered the regions during my summer
training programme viz: Varanasi.
This work is carried out through self-administered questionnaires. The questions included
were opening ended, dichotomous and offered multiple choices.
6
INDEX
Sr.
No.
CONTENT Page No.
1. INTRODUCTION
2. INDUSTRY PROFILE
3. COMPANY & PRODUCT PROFILE
4. REVIEW
5. OBJECTIVE & SCOPE
6. RESEARCH METHODOLOGY
7. DATA ANALYSIS
8. OBSERVATION & FINDINGS
9. CONCLUSIONS
10. SUGGESTIONS/RECOMMENDATIONS
11. REFERENCES
7
CHAPTER - 1
INTRODUCTION
8
INTRODUCTION
Introduction of Mutual Fund
As you probably know, mutual funds have become extremely popular over the last 20 years.
What was once just another obscures financial instrument is now a part of our daily lives.
More 80 million peoples, or one half of the households in America, invest in mutual funds.
That means that, in the United State alone, trillions of dollars are invested in mutual funds.
In fact, too many people, investing beans baying mutual funds. After all, it’s common
knowledge that investing in mutual funds is (or at least should be) better than simply letting
your cash waste away in saving account, but, for most people, that were the understanding of
fund ends. It doesn’t help the mutual fund sales people speak a strange language that is
interspersed with jargon that money investor’s don’t understand.
Originally, mutual funds were heralded as a way.
For a little guy to get a piece of the market. Instead of spending all your free time buried in
the financial pages of the wall street Journal, all you had to do was buy a mutual fund and
you’d set a way to financial freedom. As you might have guessed, it’s not that easy.
Mutual Funds are an excellent idea in theory, but in reality, that have not always delivered.
Not all mutual funds are created equal, and investing in mutual isn’t as easy as throwing your
money at the first sale person who solicits your business.
A mutual fund is trust that pools the saving of investors who share a common financial goal.
The money is collected as invested by the fund managers in different types of securities
depending upon the objective of the scheme. These could range from share to debentures to
money market instruments. The income earned through these investments and the capital
appreciation realized by the scheme is shared by its unit holders in proportion to the number
of units owned by them (pro rate). Thus the mutual fund is most suitable investment for the
common man as it offers an opportunity to invest in a diversified, professionally managed
portfolio at a relatively low cost. Anybody with an investable surplus of as little as a few
9
thousand rupees can invest in mutual funds. Each mutual fund scheme has a defined objective
and strategy.
A mutual fund is ideal investment vehicle for today’s and modern financial scenario. Markets
for equity shares, bonds and other fixed income instruments, real estate, derivatives and other
assets have become mature and information driven. Price changes in these assets are driven
by global events occurring in faraway places. A typical individual is these is unlike to have
the knowledge, skills, inclination and time to keep track of events, understanding their
implications and act speedily. An individual also finds it difficult to keep track of ownership
of his assets, investments, brokerage dues and bank transactions etc.
A mutual fund is answer to all these situations. It appoints professionally qualified and
experienced staff that managed each of these functions on a full time basis. The large pool of
money collected in the fund allows it to hire such staff at a very low cost to each investor. In
effect, the mutual fund vehicle exploits economies of scale in all three areas
– Research, investments and transaction processing. While the concepts of individual coming
together to invest money collectively are not new, the mutual fund in its present from is a 20th
century phenomenon. In fact, mutual funds gained popularity only after the Second World
War. Globally, there are thousands of farms offering tens of thousands of
mutual funds with different investment objectives. Today, mutual funds, collectively manage
almost as much as or more money as compared to banks.
A draft offer document is to be prepared at the time of launching the fund. Typically, it
prosperities the investment objectives of the funds, the risk associated, the costs involved in
the process and the broad rules for a entry into an exit from the fund and other areas of
operation. In India as in most countries, these sponsors need approval from a regulator, SEBI
(Security Exchange Board of India) in our case. SEBI looks at track records of the sponsor
and its financial strength in granting approval to the fund from commencing operations.
A sponsors than higher as assets management company to invest the funds according to the
investment objective. It also hires another entity to be custodian of assets of the fund and
perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.
10
Definition of Mutual fund
“Mutual Fund are popular among all income levels. With a Mutual Fund, we get a
diversified basket of stocks managed by a professional…”
- Berbara Stanny.
Author of “prince charming isn’t
coming:
How women smart about money”
“A Mutual Fund is a company that brings together money for many people and invests it
in stocks, bonds or other assets. The combination holding of stocks, bonds or other assets
the fund owns are known as its portfolio. Each investor in the fund owns shares, which
represent a part of these holdings… ”
The U.S. Securities and Exchange Commission.
11
Mutual Fund:
1- A pool of money, collected from investors, invested according to certain investment objectives.
2- Ownership in hands of investors who’ve pooled in their funds.
3- Managed by a team of investment professionals.
4- The pool of funds invested in portfolio of marketable investments.
5- Investors share denominated by ‘Units’ that have a Net Asset Value (NAV) which changes every day.
6- The portfolio is created according to stated investment objectives.
7- Investors make money through Capital appreciation and Income distribution.
A mutual Fund is nothing more than a collection of stocks and/or bonds. You can think mutual
fund as a company that brings together a group of people and invests their money in stocks.
Bonds and other securities. Each investor owns shares, which represents the portion of the
holdings of the fund.
You can make money from mutual fund in three ways:
1) Income is earned from dividends on stock and interest on bonds. A fund pays out
nearly all of income it receives over the year to fund owners in the form of a
distribution.
2) If the funds shell securities that have increased in price, the fund has a capital gain.
Most funds also pass on these gains to investors in a distribution.
3) If fund holding increase in price but are not sold by the fund manager, the funds
shares increase in price. You can than shell your mutual fund shares for a profit.
Funds will also usually give you a choice either to receive a check for distributions or to reinvest the
earnings and get more shares.
12
Objectives of Mutual Fund
To provide an opportunity for longer income group to acquire without much difficult
assets in the form of shares.
To cater mainly the need by individual investors whose means are small?
To manage investor’s portfolio in manner that provide regular income, growth, safety,
liquidity and diversification opportunities.
Concepts of Mutual Fund
Mutual fund are Essen tidally investment vehicles where people with similar investment
objective come together to pool their money and invest accordingly. Each unit of any
schemes represents the proportion of pool owned by the unit holder (investor). Appreciation
or reduction of value of investments is reflected in net assets value (NAV) of the concerned
scheme, which is declared by the fund from time to time. Mutual Fund scheme are managed
by respective Asset Management Companies (AMC). Different business groups/ financial
institutions/ banks have sponsored these AMCs, either alone in collaboration with reputed
international firms. Several international funds like Alliance and Templeton are also
independent in India. Many more international Mutual Fund giants are expected to come into
Indian markets in the near future.
Mutual fund invests according to the underlying investment objective as spaced at the time of
launching a scheme. Equity funds, debt funds, gilt funds and many others cater to the
different need of the investor. The availability of these options makes them good options.
While equity fund can be risk as a stock market themselves, debt fund offer the kind of
security that is aimed for at a time of making investment. Money market funds offer the
liquidity that is desired by big investors who is park surplus funds for very short term periods.
13
Balanced funds cater to the investors having appetite foe a risk greater than the debt funds but
less than the equity funds. The only pertinent factor here is that
the fund has to be selected keeping the risk profile of the investor is mind because the
products have different risk associated with them.
Mutual fund is the most suitable investment for the common man as it offers an opportunity
to invest in diversified, professionally managed portfolio at a relatively low cost. The small
saving all the investors are put together to increase the buying power
And higher a professional manager to invest the monitor the money. Anybody with an invest
able surplus of as little as a few thousand rupees can invest in Mutual Funds.
Each Mutual Fund scheme has a defined investment objective and strategy.
History of Mutual Fund:
In 1774, a Dutch merchant invited subscriptions from investors to set up an investment trust
by the name of Eendragt Maakt Magt (translated into English, it means, ‘Unity Creates
Strength’), with the objective of providing diversification at low cost to small investors. Its
success caught on, and more investment trust were launched, with verbose and quirky names
that when translated read ‘profitable and prudent’ or ‘small maters grow by consent. The
foreign and colonial Govt. trust, formed in London in 1868, promised ‘start ‘the investor of
modest means the same advantages as the large capitalist… by spreading the investment over
a number of stock.
When three Boston securities executives pooled their money together in 1924 to create the
first mutual fund, they had no idea how popular mutual funds would become. The idea of
pooling money together for investing purposes started in Europe in the mid-1800s. The first
pooled fund in the U.S. was created in 1893 for the faculty and staff of Harvard University.
14
On March 21st, 1924 the first official mutual fund was born. It was called the Massachusetts
Investors Trust.
After one year, the Massachusetts Investors Trust grew from $50,000 in assets in 1924 to
$392,000 in assets (with around 200 shareholders). In contrast, there are over 10,000 mutual
funds in the U.S. today totaling around $7 trillion (with approximately 83 million individual
investors) according to the Investment Company Institute.
The stock market crash of 1929 slowed the growth of mutual funds. In response to the stock
market crash, Congress passed the Securities Act of 1933 and the Securities Exchange Act of
1934. These laws require that a fund be registered with the SEC and provide prospective
investors with a prospectus. The SEC (U.S. Securities and Exchange Commission) helped
create the Investment Company Act of 1940 which provides the guidelines that all funds must
comply with today.
With renewed confidence in the stock market, mutual funds began to blossom. By the end of
the 1960s there were around 270 funds with $48 billion in assets. In 1976, John C. Bogle
opened the first retail index fund called the First Index Investment Trust. It is now called the
Vanguard 500 Index fund and in November of 2000 it became the largest mutual fund ever
with $100 billion in assets.
One of the largest contributors of mutual fund growth was Individual Retirement Account
(IRA) provisions made in 1981, allowing individuals (including those already in corporate
15
pension plans) to contribute $2,000 a year. Mutual funds are now popular in employer-
sponsored defined contribution retirement plans (401k), IRAs.
As of October 2007, there are 8,015 mutual funds that belong to the Investment Company
Institute (ICI), a national trade association of investment companies in the United States, with
combined assets of , $12.356 trillion.
History of Mutual Fund in India:
The mutual fund revolution sweeping developed nations nearly bypassed India, which was
then a young nation that had decided to rely on the state for economic development. The
Government muzzled private participation in the financial sector and at the same time, it
showed a sense of inertia and a lack of imagination in developing viable investment option
for households. With the private sector marginalized by the state in the economic sphere, the
stock market was anything but hip and happening, which obviated the need for such
investment vehicle in the first place. Government initiatives were few and far between.
From public control: One such rare initiative gave birth to mutual fund industry in India.
The foundation for mutual fund operation in India was laid by the Parliament in 1963 with
the enactment of the Unit Trust of India Act. The then finance minister Mr. T.T. Krishna
machari, who initiated the act, made it clear to the Parliament that UTI would provide an
opportunity for the middle and lower income groups to acquire without much difficulty,
property in the form of share,… this initiation is intended to cater mainly to the needs of the
individual investors whose means are small. With this mission, UTI came out its maiden fund
an open –end one in 1964.
16
CHAPTER - 2
INDUSTRY/SECTOR
PROFILE
17
ABOUT INDUSTRY
The mutual fund industry in India in a small way with the UTI Act creating what was
effectively a small savings division within the RBI. Over a period of 25 years this grew fairly
successfully and gave investors a good return, and therefore in 1989, as the next logical step,
public sector banks and financial institutions were allowed to float mutual funds and their
success emboldened the government to allow the private sector to foray into this area.
The initial years of the industry also saw the emerging years of the Indian equity market,
when a number of mistakes were made and hence the mutual fund schemes, which invested
in lesser known stocks and at very high levels, became loss leaders for retail investors, From
those days to today the retail investor, for whom the mutual fund is actually intended, has not
yet returned to the industry in a big way. But to be fair, the industry too has focused on
bringing in the large investor, so that it can create a significant base corpus, which can make
the retail investor feel more secure.
The mutual fund industry in India has, so far, gone through many major phases. The
following are those important four phases. The mutual fund industry in India started in 1963
with the formation of Unit Trust of India, at the initiative of the Government of India and
Reserve Bank of India. The history of mutual funds in India can be broadly divided into four
distinct phases:-
First Phase – 1964-87:
18
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs. 6,700 crores of assets under management.
Second Phase – 1987-1993:
(Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990.At the end of 1993, the mutual fund industry had assets 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, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
19
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed.
The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private
sector mutual fund registered in July 1993.The 1993 SEBI (Mutual Fund) Regulations were
substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The
industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of
mutual fund houses went on increasing, with many foreign mutual funds setting up funds in
India and also the industry has witnessed several mergers and acquisitions. As at the end of
January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit
Trust of India with Rs. 44,541 crores of assets under management was way ahead of other
mutual funds.
Fourth Phase:
(Since February 2003)
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs.29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation
20
of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth. As at the
end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores
under 421 schemes.
The latest phase in the industry's evolution began with the bifurcation of UTI. The Indian
mutual fund industry has grown by about 4.2 times from 1993 (Rs. 470 billion) to 2005 (Rs.
1992 billion) in terms of AUM. The private sector was allowed entry to set up asset
management companies in 1993. There was a brief period of five years during which the
asset Growth was slow.
The AUM for the mutual fund industry started to grow rapidly after 1998. Between 1998 and
2005 the AUM of the sector excluding UTI grew by over 15 times from Rs.114 billion in
1998 to Rs.1738 billion as at 2005. Though India is a minor player in the global mutual funds
industry, its AUM as a proportion of the global AUM has steadily increased, doubling from
1999 levels.
Latest facts of the Mutual Fund Industry in India:
1- 100% growth in the last 6 years.
2- By end of February 2006, Indian mutual fund industry reached more than Rs 200000
crore. It is estimated that by 2010 March-end, the total assets of all scheduled
commercial banks should be Rs 40,90,000 crore.
3- Numbers of foreign AMC’s are in the queue to enter the Indian markets.
21
4- Our saving rate is over 23%, highest in the world. Only channelizing these savings in
mutual funds sector is required.
5- We have approximately 29 mutual funds which is much less than US having more
than 800. There is a big scope for expansion.
6- ‘B’ and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing cities.
7- Mutual fund can penetrate rural like the Indian insurance industry with simple and
limited products.
8- SEBI allowing the MF's to launch commodity mutual funds.
9- Emphasis on better corporate governance.
10- Trying to curb the late trading practices.
22
Mutual Fund Operation Flow Chart
GROWTH IN ASSETS UNDER MANAGEMENT
23
ORGANIZATIONAL STRUCTURE OF MUTUAL FUND
24
ADVANTAGES OF MUTUAL FUNDS
Professional Management
You avail of the services of experienced and skilled professionals who are backed by a
dedicated investment research team which analyses the performance and prospects of
companies and selects suitable investments to achieve the objectives of the scheme.
25
Diversification
Mutual Funds invest in a number of companies across a broad cross-section of industries and
sectors. This diversification reduces the risk because seldom do all stocks declare at the same
time and in the same proportion. You achieve this diversification through a Mutual Fund with
far less money than you can do on your own.
Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as
bad deliveries, delayed payments and unnecessary follow up with brokers and companies.
Mutual Funds save your time and make investing easy and convenient.
Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as
they invest in a diversified basket of selected securities.
Low Costs
Mutual Funds are a relatively less expensive way to invest compared to directly investing in
the capital markets because the benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.
Liquidity
In open-ended schemes, you can get your money back promptly at net asset value related
prices from the Mutual Fund itself. With close-ended schemes, you can sell your units on a
stock exchange at the prevailing market price or avail of the facility of direct repurchase at
NAV related prices which some close-ended and interval schemes offer you periodically.
Transparency
26
You get regular information on the value of your investment in addition to disclosure on the
specific investments made by your scheme, the proportion invested in each class of assets and
the fund manager's investment strategy and outlook.
Flexibility
Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans, you can systematically invest or withdraw funds according to your needs
and convenience.
Affordability
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual
fund because of its large corpus allows even a small investor to take the benefits of its
investment strategy.
Choice of Schemes
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
Well Regulated
All Mutual Funds are registered with SEBI and they function within the provisions of strict
regulations designed to protect the interests of investors. The operations of Mutual Funds are
regularly monitored by SEBI.
Drawbacks of Mutual Funds
No Guarantees: No investment is risk free. If the entire stock market declines in
value, the value of mutual fund shares will go down as well, no matter how balanced
the portfolio. Investors encounter fewer risks when they invest in mutual funds than
27
when they buy and sell stocks on their own. However, anyone who invests through a
mutual fund runs the risk of losing money.
Fees and commissions: All funds charge administrative fees to cover their day-to-
day expenses. Some funds also charge sales commissions or "loads" to compensate
brokers, financial consultants, or financial planners. Even if you don't use a broker or
other financial adviser, you will pay a sales commission if you buy shares in a Load
Fund.
Taxes: During a typical year, most actively managed mutual funds sell anywhere
from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit
on its sales, you will pay taxes on the income you receive, even if you reinvest the
money you made.
Management risk: When you invest in a mutual fund, you depend on the fund's
manager to make the right decisions regarding the fund's portfolio. If the manager
does not perform as well as you had hoped, you might not make as much money on
your investment as you expected. Of course, if you invest in Index Funds, you forego
management risk, because these funds do not employ managers.
Classification of Mutual Funds
Mutual fund schemes may be classified on the basis of its structure and its investment
objective.
28
Open-ended Funds
An open-end fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value
("NAV") related prices. The key feature of open-end schemes is liquidity.
Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15
years. The fund is open for subscription only during a specified period. Investors can invest
in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where they are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate
that at least one of the two exit routes is provided to the investor. A closed-end mutual fund
has a number of share issued to the public through an initial public offering. These funds
have a stipulated maturity period generally ranging from 3 to 15 years.
The fund is open for subscription only during a specified period. Investors can invest in the
scheme at the time of initial public issue and there after they can bye or sell the unit of the
scheme on the stock exchanges where they are listed.
Once underwritten, closed end funds trade on stock exchanges like stocks or bonds. The
market price of closed in funds is determine by supply and demand and not by Net Assets
Value (NAV), as is the case in open-ends funds. Usually closed mutual funds trade at
discounts to their underlying assets value.
Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open
for sale or redemption during pre-determined intervals at NAV related prices.
29
Load Funds
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or
sell units in the fund, a commission will be payable. Typically entry and exit loads range
from 1% to 2%. It could be worth paying the load, if the fund has a good performance
history.
Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to long- term.
Such schemes normally invest a majority of their corpus in equities. It has been proven that
returns from stocks, have outperformed most other kind of investments held over the long
term. Growth schemes are ideal for investors having a long-term outlook seeking growth over
a period of time.
Income Funds
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures and
Government securities. Income Funds are ideal for capital stability and regular income.
Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
30
Securities in the proportion indicated in their offer documents. In a rising stock market, the
NAV of these schemes may not normally keep pace, or fall equally when the market falls.
These are ideal for investors looking for a combination of income and moderate growth.
Money Market Funds
The aim of money market funds is to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer short-term instruments such as
treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on
these schemes may fluctuate depending upon the interest rates prevailing in the market. These
are ideal for Corporate and individual investors as a means to park their surplus funds for
short periods.
No-Load Funds
A No-Load Fund is one that does not charge a commission for entry or exit. That is, no
commission is payable on purchase or sale of units in the fund. The advantage of a no load
fund is that the entire corpus is put to work.
Other Schemes:
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of the Indian
Income Tax laws as the Government offers tax incentives for investment in specified
avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes
are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides
opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual
Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is
invested before September 30, 2000.
Special Schemes
31
• Industry Specific Schemes
Industry Specific Schemes invest only in the industries specified in the offer document. The
investment of these funds is limited to specific industries like InfoTech, FMCG,
Pharmaceuticals etc.
• Index Schemes
Index Funds attempt to replicate the performance of a particular index such as the BSE
Sensex or the NSE 50.
• Sectoral Schemes
Sectoral Funds are those, which invest exclusively in a specified industry or a group of
industries or various segments such as 'A' Group shares or initial public offerings.
Fund of Funds
A fund of funds is a type of mutual fund that invests in other mutual funds. Just as a mutual
fund invests in a number of different securities, a fund of funds holds shares of many
different mutual funds.
Fund of funds are designed to achieve greater diversification than traditional mutual funds.
But on the flipside, expense fees on fund of funds are typically higher than those on regular
funds because they include part of the expense fees charged by the underlying funds. Also,
since a fund of funds buys many different funds which themselves invest in many different
stocks, it is possible for the fund of funds to own the same stock through several different
funds and it can be difficult to keep track of the overall holdings.
Net Asset Value (NAV)
32
The Net Asset Value of the fund is the cumulative market value of the assets fund net of its
liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets in
the fund, this is the amount that the shareholders would collectively own. This gives rise to
the concept of net asset value per unit, which is the value, represented by
the ownership of one unit in the fund. It is calculated simply by dividing the net asset value of
the fund by the number of units. However, most people refer loosely to the NAV per unit as
NAV, ignoring the "per unit". We also abide by the same convention.
Calculation of NAV
The most important part of the calculation is the valuation of the assets owned by the fund.
Once it is calculated, the NAV is simply the net value of assets divided by the number of
units outstanding. The detailed methodology for the calculation of the asset value is given
below.
Asset value is equal to
Sum of market value of shares/debentures
+ Liquid assets/cash held, if any
+ Dividends/interest accrued
Amount due on unpaid assets
Expenses accrued but not paid
Details on the above items
33
For liquid shares/debentures, valuation is done on the basis of the last or closing market price
on the principal exchange where the security is traded
For illiquid and unlisted and/or thinly traded shares/debentures, the value has to be estimated.
For shares, this could be the book value per share or an estimated market price if suitable
benchmarks are available. For debentures and bonds, value is estimated on the basis of yields
of comparable liquid securities after adjusting for liquidity. The value of fixed interest
bearing securities moves in a direction opposite to interest rate changes Valuation of
debentures and bonds is a big problem since most of them are unlisted and thinly traded. This
gives considerable leeway to the AMCs on valuation and some of the AMCs are believed to
take advantage of this and adopt flexible valuation policies depending on the situation.
Interest is payable on debentures/bonds on a periodic basis say every 6 months. But, with
every passing day, interest is said to be accrued, at the daily interest rate, which is calculated
by dividing the periodic interest payment with the number of days in each period. Thus,
accrued interest on a particular day is equal to the daily interest rate multiplied by the number
of days since the last interest payment date.
Usually, dividends are proposed at the time of the Annual General meeting and become due
on the record date. There is a gap between the dates on which it becomes due and the actual
payment date. In the intermediate period, it is deemed to be "accrued".
Expenses including management fees, custody charges etc. are calculated on a daily basis
How to invest in Mutual Fund
34
Identify your Investment needs
Your financial goals will vary, based on your age, lifestyle, financial independence, family
commitments, and level of income and expenses among many other factors. Therefore, the
first step is to assess your needs. You can begin by defining your investment objectives and
needs which could be regular income, buying a home or finance a wedding or educate your
children or a combination of all these needs, the quantum of risk you are willing to take and
your cash flow requirements.
Choose the right Mutual Fund
The important thing is to choose the right mutual fund scheme which suits your requirements.
The offer document of the scheme tells you its objectives and provides supplementary details
like the track record of other schemes managed by the same
Fund Manager. Some factors to evaluate before choosing a particular Mutual Fund are the
track record of the performance of the fund over the last few years in relation to the
appropriate yardstick and similar funds in the same category. Other factors could be the
portfolio allocation, the dividend yield and the degree of transparency as reflected in the
frequency and quality of their communications. For selecting the right scheme as per your
specific requirements.
Select the ideal mix of Schemes
Investing in just one Mutual Fund scheme may not meet all your investment needs. You may
consider investing in a combination of schemes to achieve your specific goals.
Invest Regularly
35
The best approach is to invest a fixed amount at specific intervals, say every month. By
investing a fixed sum each month, you buy fewer units when the price is higher and more
units when the price is low, thus bringing down your average cost per unit. This is called
rupee cost averaging and is a disciplined investment strategy followed by investors all over
the world. You can also avail the systematic investment plan facility offered by many open
end funds.
DSP BlackRock Investment Managers Pvt. Ltd.
Introduction
DSP BlackRock Investment Managers Pvt. Ltd. is the investment manager to DSP BlackRock Mutual Fund. The philosophy of DSP BlackRock Investment Managers Ltd. has been grounded in the belief that experienced investment professionals, using a disciplined process and sophisticated analytical tools, can consistently add value to client portfolios. DSP BlackRock Investment Managers Ltd. takes a three dimensional approach to the management of the organization, incorporating functional, product and regional elements in support of clients goals. The functional dimension looks at the company s operations by specific task, such as portfolio management, account management or operations. The product dimension brings together the cross-disciplinary expertise critical to managing client assets in each class. Finally, the regional aspect of the company s model recognizes the unique, geography-specific needs of clients as well as the importance of local regulatory issues. With our three-dimensional approach to managing the organization, we seek to: Ensure consistency on a global basis; Allow for the tailoring of products and services according to client or local needs; Promote teamwork among our employees worldwide; and Facilitate operational integrity and efficiency.
Key Personnel of DSP BlackRock
S Naganath (President & CIO)
Anup Maheshwari (Exec VP, Hd. – Eq. & Corp strategy)
Dhawal Dalal (Sr. VP & Hd - Fixed Income)
Apoorva Shah (Exec Sr. VP & Fund Mgr)
Pankaj Sharma (Exec VP, Hd. - Buss. Dev & Risk Management)
36
Ramamoorthy Rajagopal (Exec VP CAO).
FUND MANAGERS
Dhawal Dalal (Sr. VP & Hd. - Fixed Income).
Apoorva Shah (Exec Sr. VP & Fund Mgr).
37
CHAPTER - 3
COMPANY
PROFILE
COMPANY PROFILE
38
DSP BLACKROCK
The Asset Management Company
DSP BlackRock Investment Managers Pvt. Ltd. is the investment manager to DSP BlackRock Mutual Fund.
The philosophy of DSP BlackRock Investment Managers Pvt. Ltd. has been grounded in the belief that experienced investment professionals, using a disciplined process and sophisticated analytical tools, can consistently add value to client portfolios.
DSP BlackRock Investment Managers Pvt. Ltd. takes a three dimensional approach to the management of the organization, incorporating functional, product and regional elements in support of clients' goals. The functional dimension looks at the company's operations by specific task, such as portfolio management, account management or operations. The product dimension brings together the cross-disciplinary expertise critical to managing client assets in each class. Finally, the regional aspect of the company's model recognizes the unique, geography-specific needs of clients as well as the importance of local regulatory issues.
With our three-dimensional approach to managing the organization, we seek to:
Ensure consistency on a global basis; Allow for the tailoring of products and services according to client or local needs;
Promote teamwork among our employees worldwide; and
Facilitate operational integrity and efficiency
DSP BlackRock Trustee Company Private Ltd., a company incorporated under the Companies Act, 1956, is the trustee for the Fund vides Trust Deed dated December 16, 1996. The shareholding of the Trustee is as follows: BlackRock Advisors Singapore Pvt. Ltd., a wholly owned subsidiary of BlackRock Inc., holds 49% and the balance 51% is held by Mr. Hemendra Kothari.
Initially, the name of this company was DSP Merrill Lynch Ltd. But after the collaboration with Black Rock which is the U.S based Company well known for its Stamp/ mark (like ISI mark in India), it becomes DSP BlackRock Investment Mangers Pvt. Ltd. in the year April 2006.
39
Corporate Rankings
DSP BlackRock Mutual Fund has been ranked the “Best Equity Fund House” at the CNBC- TV18 CRISIL Mutual Fund of the year awards 2010, out of 37 eligible fund houses. We have won this award for the 2nd consecutive year.
Lipper Fund Awards 2010, out of 24 eligible fund houses. We have won this award for the 5th consecutive year.
Accolades such as these highlight the consistent performance that equity schemes from DSP BlackRock Mutual Fund have been delivering over the past few years. Depending on your risk profile, you could look at any or all of the schemes as your vehicles to reach your financial goals.
CNBC-TV18 CRISIL Mutual Fund of the year awards – Last 1year performance ending Dec. 31st 2009.
Lipper Fund awards 2010 – last 3 years performance ending Dec. 31st 2009.
Sponsors:
DSP HMK Holdings Pvt. Ltd. and DSP ADIKO Holdings Pvt. Ltd.
DSP HMK Holdings Pvt. Ltd. and DSP ADIKO Holdings Pvt. Ltd. are companies incorporated in 1983 under the Companies Act, 1956 and are also registered with the Reserve Bank of India as non deposit taking Non-banking Finance Companies. These companies have been functioning as investment companies.
BlackRock
BlackRock is a premier provider of global investment management services to institutional and retail clients around the world managing assets in excess of US$ 1.3 trillion* as on June 30, 2009. Headquartered in New York, BlackRock serves clients from offices in 19 countries, maintaining a major presence in North America, Europe, Asia-Pacific, and the Middle East. With approximately 5,700 employees, including more than 700 investment professionals worldwide, BlackRock offers clients in-depth
40
local knowledge and understanding, while leveraging the strength of their global presence and infrastructure to deliver focused investment solutions. Today, BlackRock services clients in over 60 countries.
*As on September 29, 2008; 1 USD@ Rs 46.94
BlackRock Inc.
40 East 52nd Street,
New York, NY 10022, USA
Trustees :
DSP BlackRock Trustee Company Private Ltd., a company incorporated under the Companies Act, 1956, is the trustee for the Fund vides Trust Deed dated December 16, 1996. The shareholding of the Trustee is as follows: BlackRock Advisors Singapore Pvt. Ltd., a wholly owned subsidiary of BlackRock Inc., holds 49% and the balance 51% is held by Mr. Hemendra Kothari.
Mr. Shitin D. Desai
Mr. S. S. Thakur
Mr. S. Doreswamy
Mr. T.S Krishna Murthy
AMC Directors:
Mr. Hemendra M. Kothari, Chairman
Mr. Laurence D Fink
Ms. Susan L. Wagner
Mr. K R V Subramanian
Dr. Omkar Go swami
Mr. Rakesh Mohan
Mr. Rohit Bhagat
41
Management teams:
S. Naganath - President & CIO
S. Naganath is the President and Chief Investment Officer of DSP BlackRock Investment Managers Pvt. Ltd. He worked with DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers) from its inception (1996) to October 1999 as Chief Investment Officer. He then worked for Credit Suisse Asset Management, New York as a portfolio manager for international equities before re-joining DSP BlackRock
Investment Managers Pvt. Ltd. in 2002 as Joint President and Chief Investment Officer. Prior to his initial position at DSP BlackRock Investment Managers, he had worked in Hong Kong as a portfolio manager with Merrill Lynch Asset Management and GT Management, Hong Kong. Naganath holds a Bachelor of Commerce degree from Madras University and a PGDM from Indian Institute of Management, Ahmadabad (class of 1987).
In a poll conducted by The Asset Magazine in 2001, he was ranked as one of the most astute investors in the Asian markets, amongst his peers on the US East Coast.
Anup Maheshwari - Exec. Vice President, Head Equities & Corporate Strategy
Anup has been working with DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers) since July 1997, and has been managing the domestic funds since May 2001. Anup was CIO at HSBC Asset Management between Dec 2005 and May 2006 before returning to DSP BlackRock Investment Managers. Between 1997 and 2000, Anup also managed an offshore fund, the Merrill Lynch India Fund
which was registered in Mauritius and sold to Merrill Lynch's clientele outside India. Prior to joining DSP BlackRock Investment Managers Pvt. Ltd., he worked with Chescor, a British fund management firm that managed three offshore funds investing into Indian equities. Anup obtained a Bachelor of Commerce degree from Sydenham College, Bombay University, in 1991 followed by a Post Graduate Diploma in Management (PGDM) from the Indian Institute of Management (IIM), Lucknow, in 1993. In May 2005, the "Top Fund Managers of India" survey conducted by Business Today and Mutualfundsindia.com, featured Anup amongst the top equity fund managers in the country.
Dhawal Dalal - Senior Vice President & Head – Fixed Income
Mr. Dhawal Dalal joined Merrill Lynch Investment Managers in 1996 after receiving his MBA from the University of Dallas. He worked with the Merrill Lynch Private Client Fixed Income Division for approximately a year. He later joined Money Market Desk of Merrill Lynch Investment Managers. He returned to India in 1998 to join the Fixed Income Desk of
42
DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers). He is currently Senior Vice President and Head of Fixed Income at DSP BlackRock Investment Managers Pvt. Ltd..
Apoorva Shah - Exec. Vice President & Fund Manager
Apoorva Shah joined DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers) in April 2006. He previously held senior positions in the Global Private Client and Institutional Equity Sales divisions of DSP Merrill Lynch Ltd. Apoorva has a Post Graduate Diploma in Management (PGDM) from the Indian Institute of Management (IIM), Ahmedabad, and brings with him over 18 years of
experience in banking and investment.
Pankaj Sharma - Exec. Vice President, Head of Business Development & Risk Management
Pankaj joined DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers) in June 2003 and is currently the head of Business Development & Risk Management. Pankaj has more than 15 years experience in the Banking and Finance sectors. Between June 2002 and May 2003, Pankaj was Head of Pre-Sales and Product Evangelist (Treasury Product) at Infosys Technologies. Prior to that, from April 1993
to April 2002, Pankaj served as Vice President (Risk Management) at Citibank, with assignments covering India, Singapore and the United States. Pankaj holds a Bachelor of Engineering degree in Computer Engineering and obtained his Post Graduate Diploma in Management (PGDM) from XLRI, Jamshedpur in 1993.
Ramamoorthy Rajagopal - Exec. Vice President, CAO
Ramamoorthy Rajagopal began his career as a Management Trainee with Mafatlal group in 1988. In 1989, he joined Arthur Andersen in their Financial Controls and Taxation department. Towards the end of 1992, he took up an overseas assignment with Alghanim Industries, Kuwait (one of the largest trading conglomerate in the Gulf with business interests in automotive, electronics, Insurance, Food & Consumables, Travel Services
and Consumer Engineering) as a Senior Financial Analyst. In April 1996, he returned to India to join DSP Merrill Lynch Ltd in their Finance & Operations team and was part of the core team which was responsible for setting up systems and processes for their equity broking operations. In 2000, he started overseeing DSP Merrrill Lynch’s Distribution back office operations.
43
In March 2002, he was moved to DSP BlackRock Investment Managers (previously called DSP Merrill Lynch Fund Managers) as Vice President and Chief Financial Officer (CFO). Currently, he is the Chief Administrative Officer (CAO) overseeing critical support functions viz. Fund Administration, Client Response and Operations, Finance, Technology, Legal & Compliance and Corporate Services.
Ramamoorthy Rajagopal holds a Bachelor of Commerce degree from Mumbai University and the dual qualifications of CFA and ICWA.
Ajit Menon - Exec. Vice President, Head of Sales
Ajit has been working with DSP BlackRock Investment Managers Pvt. Ltd.( previously called DSP Merrill Lynch Fund Managers), since August 2000 and has been heading the Sales function since January 2008. Previous to that, Ajit has been heading the Banking and Retail channel sales for the firm. He has more than 15 years of Sales experience and prior to joining DSP BlackRock Investment Managers Pvt. Ltd., Ajit has worked with
Standard Chartered Bank, Vodafone and Crompton Greaves Ltd. Ajit holds a Bachelor of Commerce degree from Parle College, University of Mumbai in 1991 followed by a Masters in Management Studies from Chetna’s Ramprasad Khandelwal Institute of Management and Research, Mumbai university in 1994.
Registered Office
Our Registered / Corporate Office
DSP BlackRock Investment Managers Private Limited
West Wing, 11th Floor, Tulsiani Chambers, Nariman Point,Mumbai - 400 021.
44
PRODUCT PROFILE
45
PRODUCT PROFILE
Open Ended Growth Schemes
DSP BlackRock Equity Fund (DSPBREF)
An Open Ended growth Scheme, seeking to generate long term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of issuers domiciled in India.
DSP BlackRock Top 100Equity Fund (DSPBRTEF)
An Open Ended growth Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of the 100 largest corporate, by market capitalization, listed in India.
DSP BlackRock Opportunities Fund (DSPBROF)
An Open Ended growth Scheme, seeking to generate long term capital appreciation and whose secondary objective is income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the Investment Focus of the Scheme.
DSP BlackRock Tiger Fund (DSPBRTF)
An open ended diversified equity Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic
46
policies by the Government and/or from continuing investments in infrastructure, both by the public and private sector.
DSP BlackRock Technology.com Fund (DSPBRTF)
An Open Ended growth Scheme, seeking to generate long term capital appreciation, and whose secondary objective is income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the Investment Focus of the Scheme.
DSP Black Rock Small and Mid Cap Fund (DSPBRSMF)
An open Ended equity growth scheme, primarily seeking to generate long term capital appreciation from a portfolio substantially constituted of equity and equity related securities, which are not part of top 100 stocks by market capitalisation.
DSP BlackRock Tax Saver Fund (DSPBRTSF)
An open Ended equity linked savings scheme, whose primary investment objective is to seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates, and to enable investors avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time.
DSP BlackRock Focus25 Fund (DSPBRF25)
The primary investment objective of the Scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities including equity derivatives. The portfolio will largely consist of companies, which are amongst the top 200 companies by market capitalization.
47
Open Ended Income Schemes
DSP Black Rock Bond Fund (DSPBRBF) DSP Black Rock Government Securities Fund (DSPBRGSF) DSP Black Rock Short Term Fund (DSPBRSTF) DSP Black Rock Saving Manager Fund (DSPBRSMF)-Conservative. DSP Black Rock Saving Manager Fund (DSPBRSMF)- Moderate DSP Black Rock Saving Manager Fund (DSPBRSMF)-Aggressive. DSP Black Rock Money Manager Fund (DSPBRMMF)
DSP BlackRock Micro Cap Fund
An Open equity growth scheme that seeks to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities, which are not part of the top 300 companies by market capitalization. From time to time, the Investment Manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction. This shall be the fundamental attribute of the Scheme.
The Scheme was launched as a three year close ended scheme and has been converted into an open ended scheme with effect from June 15, 2010.
Plans Minimum Investment Regular
Institutional
Regular Plan: Rs. 10,000Institutional Plan: Rs. 5 croreSIP – Rs. 1000 (min 12 installments)
GrowthRegular Plan: Rs. 1,000Institutional Plan: Rs. 5 lakh
Expense Ratio* Exit Load (both plans)
Plan RatioHolding Period: < 12 months: 1%; ≥ 12 months: Nil
Regular 2.28%
* Financial year beginning to June 30, 2010.
Entry Load: NIL.
Indicative Asset Allocation
Under normal circumstances, it is anticipated that the asset allocation shall be as follows:
48
Types of Instruments
Indicative Allocation (% of Corpus)
Risk Profile
1(a) Equity & Equity related securities which are not part of the top 300 stocks by market capitalization
65% - 100%
High
1(b) Equity & Equity related securities which are part of the top 300 stocks by market capitalization of 1(a) & (b) above, investments in ADRs, GDRs and foreign securities.
0% - 35% High
DSP BlackRock Income Schemes
DSP Black Rock Saving Manager Fund (DSPBRSMF)-Conservative
An Open Ended income Scheme, seeking to generate an attractive return, consistent with prudent risk, from a portfolio which is substantially constituted of quality debt securities. The Scheme will also seek to generate capital appreciation by investing a smaller portion of its corpus in equity and equity related securities of the 100 largest corporates, by market
capitalization, listed in India.
DSP Black Rock Saving Manager Fund (DSPBRSMF)-Moderate
An Open Ended income Scheme, seeking to generate an attractive return, consistent with prudent risk, from a portfolio which is substantially constituted of quality debt securities. The Scheme will also seek to generate capital appreciation by investing a smaller portion of its corpus in equity and equity related securities of the 100 largest corporates, by market capitalization, listed in India.
DSP Black Rock Saving Manager Fund (DSPBRSMF)-Aggressive
An Open Ended income Scheme, seeking to generate an attractive return, consistent with prudent risk, from a portfolio which is substantially constituted of quality debt securities. The Scheme will also seek to generate capital appreciation by investing a smaller portion of its corpus in equity and equity related securities of the 100 largest corporates, by market capitalization, listed in
India.
49
DSP Black Rock Balanced Fund (DSPBRBalF)
An Open Ended balanced Scheme, seeking to generate long term capital appreciation and current income from a portfolio constituted of equity and equity related securities as well as fixed income securities (debt and money market securities).
DSP BlackRock Investment Managers Pvt. Ltd.
Open Ended Schemes
Scheme Name
Performance Fund Size
As On30
Days91
Days1
Year3
YearRs. in
Cr.As on
DSP BlackRock Balanced Fund - Dividend
Jul 27, 2010
2.6111
3.7965
27.983
13.6661
704.65
Jun 30, 2010
DSP BlackRock Balanced Fund - Growth
Jul 27, 2010
2.6099
3.7936
27.9765
13.6745
704.65
Jun 30, 2010
DSP BlackRock Bond Fund - Retail Plan - Dividend
Jul 27, 2010
-0.0388
1.277
4.118
6.0778
124.7
Jun 30, 2010
DSP BlackRock Bond Fund - Retail Plan - Growth
Jul 27, 2010
0.2403
1.5588
4.61
6.9255
124.7
Jun 30, 2010
DSP BlackRock Bond Fund - Retail Plan - Monthly Dividend
Jul 27, 2010
0.235
1.2272
4.1666
6.2697
124.7
Jun 30, 2010
50
DSP BlackRock Equity Fund - Dividend
Jul 27, 2010
3.4207
4.6513
36.4616
14.9355
2049.45
Jun 30, 2010
DSP BlackRock Equity Fund - Growth
Jul 27, 2010
3.4173
4.6502
36.4714
14.9363
2049.45
Jun 30, 2010
DSP BlackRock Equity Fund - IP - Growth
Jul 27, 2010
3.475
4.7985
NA NA 2049.45
Jun 30, 2010
DSP BlackRock Floating Rate Fund - IP - Daily Div
Jul 23, 2010
0.3678
1.097
4.1065
4.0842
2323.33
Jun 30, 2010
DSP BlackRock Floating Rate Fund - IP - Dividend
Jul 27, 2010
0.3175
1.1237
NA NA 2323.33
Jun 30, 2010
DSP BlackRock Floating Rate Fund - IP - Growth
Jul 27, 2010
0.4479
1.2552
4.7161
6.8863
2323.33
Jun 30, 2010
DSP BlackRock Floating Rate Fund - IP - Wkly Div
Jul 27, 2010
0.4004
1.1022
4.1248
NA 2323.33
Jun 30, 2010
DSP BlackRock Floating Rate Fund - Regular Plan - Daily Div
Jul 23, 2010
0.3497
1.0421
3.8807
5.4103
2323.33
Jun 30, 2010
DSP BlackRock Floating Rate Fund - Regular Plan - Div
Jul 27, 2010
0.3029
1.0687
3.9756
5.6522
2323.33
Jun 30, 2010
DSP BlackRock Floating Rate Fund - Regular Plan - Growth
Jul 27, 2010
0.4257
1.1918
4.456
6.6076
2323.33
Jun 30, 2010
DSP BlackRock Floating Rate Fund - Regular Plan - Wkly Div
Jul 27, 2010
0.3807
1.0464
3.9
5.4466
2323.33
Jun 30, 2010
DSP BlackRock Focus 25 Fund - Dividend
Jul 27, 2010
1.2854
NA NA NA NA NA
DSP BlackRock Focus 25 Fund - Growth
Jul 27, 2010
1.2854
NA NA NA NA NA
DSP BlackRock Government Securities Fund - Dividend
Jul 27, 2010
-0.2217
2.0387
3.4942
9.5182
69.77
Jun 30, 2010
DSP BlackRock Government Securities Fund - Growth
Jul 27, 2010
0.0899
2.3578
3.8208
10.9404
69.77
Jun 30, 2010
DSP BlackRock Government Securities Fund - Mthly Dividend
Jul 27, 2010
0.0642
1.9794
3.1365
9.6166
69.77
Jun 30, 2010
DSP BlackRock India Tiger Fund - Dividend
Jul 27, 2010
3.4638
3.086
21.8787
6.6797
3191.42
Jun 30, 2010
51
DSP BlackRock India Tiger Fund - Growth
Jul 27, 2010
3.4637
3.0818
21.8749
6.6887
3191.42
Jun 30, 2010
DSP BlackRock India Tiger Fund - IP - Dividend
Jul 27, 2010
3.5099
3.2135
22.5384
NA 3191.42
Jun 30, 2010
DSP BlackRock India Tiger Fund - IP - Growth
Jul 27, 2010
3.5174
3.2195
22.536
7.2311
3191.42
Jun 30, 2010
DSP BlackRock Liquidity Fund - IP - Dly Dividend
Jul 5, 2010 0.3443
0.9213
3.0526
4.7184
989.95
Jun 30, 2010
DSP BlackRock Liquidity Fund - IP - Growth
Jul 27, 2010
0.4746
1.2645
4.101
6.2288
989.95
Jun 30, 2010
DSP BlackRock Liquidity Fund - IP - Wkly Dividend
Jul 27, 2010
0.3793
0.9929
3.1952
4.8239
989.95
Jun 30, 2010
DSP BlackRock Liquidity Fund - Regular Plan - Dly Div
Jul 5, 2010 0.3277
0.8729
2.8525
4.5067
989.95
Jun 30, 2010
DSP BlackRock Liquidity Fund - Regular Plan - Growth
Jul 27, 2010
0.4536
1.1996
3.8381
5.9655
989.95
Jun 30, 2010
DSP BlackRock Liquidity Fund - Regular Plan - Wkly Div
Jul 27, 2010
0.3637
0.9442
3.0136
4.6358
989.95
Jun 30, 2010
DSP BlackRock Micro Cap Fund - Reg - Growth
Jul 27, 2010
6.476
10.4714
NA 15.8173
280.29
Jun 30, 2010
DSP BlackRock Money Manager Fund - Daily Div
Jul 23, 2010
0.3634
0.9577
3.1228
5.4716
616.83
Jun 30, 2010
DSP BlackRock Money Manager Fund - Growth
Jul 27, 2010
0.4479
1.1108
3.6506
6.2675
616.83
Jun 30, 2010
DSP BlackRock Money Manager Fund - IP - Daily Div
Jul 23, 2010
0.3779
1.002
3.2814
5.7612
616.83
Jun 30, 2010
DSP BlackRock Money Manager Fund - IP - Growth
Jul 27, 2010
0.4654
1.1612
3.8574
6.6101
616.83
Jun 30, 2010
DSP BlackRock Money Manager Fund - IP - Weekly Div
Jul 27, 2010
0.4165
1.0221
3.3791
5.6961
616.83
Jun 30, 2010
DSP BlackRock Money Manager Fund - Weekly Div
Jul 27, 2010
0.401
0.978
3.1982
5.4765
616.83
Jun 30, 2010
DSP BlackRock Natural Jul 26, 3.4591 6.3122 32.8009 NA 186.47 Jun 30, 2010
52
Resources & New Energy Fund - Ret - Div
2010
DSP BlackRock Natural Resources & New Energy Fund - Ret - Gth
Jul 26, 2010
3.4591
6.3122
32.8009
NA 186.47
Jun 30, 2010
DSP BlackRock Opportunities Fund - Div
Jul 27, 2010
3.91
7.2944
32.89
10.1668
886.42
Jun 30, 2010
DSP BlackRock Opportunities Fund - Growth
Jul 27, 2010
3.9113
7.2957
32.892
10.1594
886.42
Jun 30, 2010
DSP BlackRock Opportunities Fund - IP - Div
Jul 27, 2010
3.981
7.5094
33.8506
NA 886.42
Jun 30, 2010
DSP BlackRock Opportunities Fund - IP - Growth
Jul 27, 2010
3.981
7.5094
33.8506
NA 886.42
Jun 30, 2010
DSP BlackRock Savings Manager Fund - Aggressive - Growth
Jul 27, 2010
-0.2712
0.4087
7.7695
8.2195
164.51
Jun 30, 2010
DSP BlackRock Savings Manager Fund - Aggressive - Mthly Dividend
Jul 27, 2010
-0.35 0.2776
6.5983
7.3765
164.51
Jun 30, 2010
DSP BlackRock Savings Manager Fund - Aggressive - Qtly Dividend
Jul 27, 2010
-0.3764
0.3037
6.7174
7.6396
164.51
Jun 30, 2010
DSP BlackRock Savings Manager Fund - Conservative - Growth
Jul 27, 2010
0.0838
1.5458
3.893
4.3839
25.43
Jun 30, 2010
DSP BlackRock Savings Manager Fund - Conservative - Mthly Dividend
Jul 27, 2010
0.0321
1.3131
3.3127
3.901
25.43
Jun 30, 2010
DSP BlackRock Savings Manager Fund - Conservative - Qtly Dividend
Jul 27, 2010
-0.1069
1.3506
3.3963
3.9225
25.43
Jun 30, 2010
DSP BlackRock Savings Manager Fund - Moderate - Growth
Jul 27, 2010
-0.1617
0.4534
5.9869
6.6296
148.72
Jun 30, 2010
DSP BlackRock Savings Manager Fund - Moderate - Mthly Dividend
Jul 27, 2010
-0.2117
0.3357
5.1052
5.9292
148.72
Jun 30, 2010
DSP BlackRock Savings Manager Fund -
Jul 27, 2010
-0.2646
0.3505
5.223
5.9521
148.72
Jun 30, 2010
53
Moderate - Qtly Dividend
DSP BlackRock Short Term Fund - Dividend
Jul 27, 2010
0.3597
1.1741
4.3504
5.8714
750.19
Jun 30, 2010
DSP BlackRock Short Term Fund - Growth
Jul 27, 2010
0.4923
1.3069
4.8468
6.5497
750.19
Jun 30, 2010
DSP BlackRock Short Term Fund - Monthly Dividend
Jul 27, 2010
0.4448
1.1614
4.3494
5.8157
750.19
Jun 30, 2010
DSP BlackRock Short Term Fund - Wkly Div
Jul 27, 2010
0.4398
1.1477
4.2511
5.7326
750.19
Jun 30, 2010
DSP BlackRock Small and Midcap Fund - Dividend
Jul 27, 2010
4.2228
6.9583
59.245
14.2477
893.41
Jun 30, 2010
DSP BlackRock Small and Midcap Fund - Growth
Jul 27, 2010
4.2177
6.9527
59.226
14.2431
893.41
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - IP - Dividend
Jul 27, 2010
0.3348
1.0345
4.43
NA 894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - IP - Dly Dividend Reinvest
Jul 27, 2010
0.3936
1.0078
3.8107
NA 894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - IP - Growth
Jul 27, 2010
0.4481
1.1486
4.4232
2.1691
894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - IP - Monthly Dividend
Jul 27, 2010
0.4049
1.0261
3.7014
5.1935
894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - IP - Weekly Dividend
Jul 27, 2010
0.4008
1.0109
3.8707
5.2543
894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - Retail - Dividend
Jul 27, 2010
0.3014
0.9125
3.4564
4.9009
894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - Retail - Dly Dividend
Jul 27, 2010
0.3518
0.8883
3.3277
NA 894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - Retail - Growth
Jul 27, 2010
0.4004
1.0121
3.8608
5.468
894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund - Retail - Monthly Dividend
Jul 27, 2010
0.362
0.9051
3.1978
4.5774
894.22
Jun 30, 2010
DSP BlackRock Strategic Bond Fund -
Jul 27, 2010
0.3582
0.8912
3.3897
4.7947
894.22
Jun 30, 2010
54
Retail - Weekly Dividend
DSP BlackRock Tax Saver Fund - Dividend
Jul 27, 2010
4.0203
5.2789
37.6531
11.8476
859.8
Jun 30, 2010
DSP BlackRock Tax Saver Fund - Growth
Jul 27, 2010
4.018
5.2761
37.6472
11.8474
859.8
Jun 30, 2010
DSP BlackRock Technology.com Fund - Reg - Dividend
Jul 27, 2010
3.3105
-0.2167
43.8406
4.9046
89.53
Jun 30, 2010
DSP BlackRock Technology.com Fund - Reg - Growth
Jul 27, 2010
3.3208
-0.1971
43.8051
4.901
89.53
Jun 30, 2010
DSP BlackRock Top 100 Equity Fund - Dividend
Jul 27, 2010
1.3913
2.7374
22.1444
13.0236
2766.84
Jun 30, 2010
DSP BlackRock Top 100 Equity Fund - Growth
Jul 27, 2010
1.3924
2.7382
22.1484
12.9952
2766.84
Jun 30, 2010
DSP BlackRock Top 100 Equity Fund - IP - Dividend
Jul 27, 2010
1.4326
2.866
22.757
NA 2766.84
Jun 30, 2010
DSP BlackRock Top 100 Equity Fund - IP - Growth
Jul 27, 2010
1.4326
2.866
22.757
7.9319
2766.84
Jun 30, 2010
DSP BlackRock Treasury Bill Fund - Dividend
Jul 27, 2010
0.3202
0.747
2.4384
3.7644
5.39
Jun 30, 2010
DSP BlackRock Treasury Bill Fund - Growth
Jul 27, 2010
0.3956
0.8228
2.7079
4.3135
5.39
Jun 30, 2010
DSP BlackRock Treasury Bill Fund - Mthly Dividend
Jul 27, 2010
0.363
0.7343
2.4286
3.7625
5.39
Jun 30, 2010
DSP BlackRock World Energy Fund - IP - Growth
Jul 26, 2010
5.9154
-7.3971
NA NA 298.99
Jun 30, 2010
DSP BlackRock World Energy Fund - Reg - Dividend
Jul 26, 2010
5.884
-7.4771
NA NA 298.99
Jun 30, 2010
DSP BlackRock World Energy Fund - Reg - Growth
Jul 26, 2010
5.884
-7.4771
NA NA 298.99
Jun 30, 2010
DSP BlackRock World Gold Fund - Dividend
Jul 26, 2010
-3.4915
7.1678
19.8112
NA 1289.62
Jun 30, 2010
DSP BlackRock World Gold Fund - Growth
Jul 26, 2010
-3.4899
7.1704
19.8048
NA 1289.62
Jun 30, 2010
DSP BlackRock World Gold Fund - IP - Growth
Jul 26, 2010
-3.4704
7.2355 -9.6149
NA
1289.62
Jun 30, 2010
DSP BlackRock World Jul 26, 5.2498 - NA NA 195.67 Jun 30, 2010
55
Mining Fund - Reg - Dividend
2010 5.2088
DSP BlackRock World Mining Fund - Reg - Growth
Jul 26, 2010
5.2498
-5.2088
NA NA 195.67
Jun 30, 2010
Chapter -4
Literature Survey
56
CHAPTER -5
OBJECTIVE/ SCOPE
57
OBJECTIVE OF THE PROJECT
THERE ARE TWO TYPES OF OBJECTIVE –;
PRIMARY OBJECTIVES
1- To know about the investors perception towards Mutual Fund for growth of DSP BlackRock.
2- To findout the best fund for growth of company.
SECONDARY OBJECTIVES
1- To identify the target customer.
58
2- To contact the target customer. 3- To know about awareness level of DSP BlackRock.
4- To know about schems of DSP BlackRock for growth.
5- To findout the competitors of DSP BlackRock.
SCOPE OF THE PROJECT:
The scope of this project includes certain points:-
To get their distributors (i.e. ARN holders) easily with the help of this project.
It increases the numbers of SIP’s (Systematic Investment Plan)
The suggestion of this project will help the organization to make suitable changes.
This project provides help to learn about AMC’s (Asset Management Co.) and Mutual
Fund industry.
The scope of marketing is indeed vast & it is determined by the requirement of the customers .
As well as here we can define the potential market and target customers of a specific company due to the scope of the company. there is a vital role the product after sales what type of service is being providing by the company. After sales function like;
Marketing sales service
Promotion, Advertisement, According to the Exchange offer,
59
Sample product etc needs & wants, assurance of the
Convenience of the product, guarantee,
Product brand etc warrantee etc.
60
Research Methodology
Introduction:
This chapter describes the methodology of the study. This study is focused on Varanasi region. In this I have covered almost all the places of Varanasi. Being constraints by data availability (both primary and secondary) and time and improper response from the respondents I have covered the regions during my summer training programme viz: in Varanasi.
The objectives of the research study are as following:
Awareness of mutual funds in Indian market. To identify the investor’s perception about mutual funds. To get knowledge about competitors.
Research is divided in two parts:
Research Design
Type of Research
Research methods
Sampling Design
Sample Size:- 120 respondents
Sample Universe- All potential individual (who can become investors) area of
61
Varanasi city.
Sample Frame:- ages of 25-60 years.
Sampling Technique:- Stratified and Probability sampling
Sample Unit:- All the investors of DSP Black Rock in Varanasi City.
Types of Research:
Descriptive Research: Description of the conditions as it exists presently. Includes survey & fact-finding enquiries of different kinds. Descriptive research is undertaken when the researcher has to get accurate description of a situation or relation between variables. This design tends to minimize bias and maximize the reliability of the data collected and analyzed. These are well structured.
Research method:
Research methods are understood as all those methods and techniques that are used for conduction of research. Research methods or techniques refer to methods the researchers use in performing research operation. In other words, all those methods which are used by the researchers during the course of studying his research problems are termed as research methods. Since the object of research, particularly the applied research, is to arrive at a solution for a given problem, the available data and the unknown aspects of the problem have to be related to each other to make a solution possible. Keeping this in view I took the following two methods:
Analysis of documents Interview
62
Collection of data:
The information needed to further proceed in the project had been collected through primary data and secondary data.
Primary data: -
Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data, survey research was used and all the investors of Varanasi were contacted and their competitors were also contacted. Survey research is the approach best suited gathering description. The primary data collection techniques used in the project is as follows:
Survey methods By Questionnaire By Personnel Interview
This method was adopted because it helps to procuring data and detail information from the respondents. Here I collected data by filling questionnaires, directly talking to the respondents.
Secondary data :
The primary data collected was through samples – investors and distributors in Varanasi city.
I have also used the secondary data which include various written documents and other related information about the mutual fund industry in India. The secondary data about the company, its products, distributors, and searching investors through distributors. Various facts and figures were groomed out as the secondary data.
The secondary data consists of information that already exists somewhere, having been collected for another purpose. Any researcher begins the research work by first going through the secondary data. Secondary data includes the information available with the company. It may be the findings of research previously done in the field. Secondary data can also be collected from magazines, newspapers, other surveys conducted by known research agencies etc.
Sampling Design:
63
Design is the plan, structure & strategy of investigation conceived so as to attain answer to question’ to survey and to control the variances. According to this project’s/ surveys the analytical, interpretive/objective design was chosen.
The sample comprised 120 respondents from Varanasi itself.
All the respondents were first surveyed, interviewed and asked various questions regarding the three broad objectives of my research work and then their feed backs were taken. Then the analysis of each and every question was done and finally incorporated into research result.
As there is no such popular model or technique available for this kind of research, I have done the analysis part of my project on my own, without using any model or scientific technique.
Universe of the Study
The universe of the study, I have selected all ARN holders and investors that are in an area of Varanasi region.
Sample Size
Samples of 120 investors were taken on the basis of convenience. The actual investors were contacted on the basis of stratified sampling.
Sampling Techniques
For the study we have taken a sample size of 120 respondents pose probability sampling technique. Further we also applied judgment sampling.
Research Period:
Research work is only carried for 8 weeks.
Research Instrument : This work is carried out through self-administered questionnaires. The questions included were opening ended, dichotomous and offered multiple choices.
64
DATA ANALYSIS
AND
INTERPRETATION
65
Q. 1- Have you invested your money in “Mutual Fund” company?
1. Yes 2. No
66
Interpretation: More than 75%respondants have invested their money in MF Co’s.
Q. 2- In which Mutual Fund Co. have you invested your money?
DSP Black Rock
Kotak Mahindra
HDFC
Reliance
Any Other (Please specify)………………..
67
Interpretation: Most of the respondents have invested their money in DSP Black Rock MF
And then in Reliance MF
Q. 3 If DSP Black Rock how did you come to know about this Co.?
(1) Friend (2) Family
(3) Advertisement (4) others (specify)……….
Interpretation: Most of the investors come to know about this Co. by their friends.
68
Q. 4- Why have you Invest your money in DSP Black Rock?
(1) Good Schemes (2) Brand Name
(3) More Profit (4) Any Others………………
Interpretation: Due to good schemes, investors are with DSP Black Rock
69
Q. 5- Which Plan do you have of DSP Black Rock?
(1) SIP (2) STP
(3) Lump sum (4) others (Specify)................
Interpretation: Maximum no’s of investors have invested their money in SIP i.e. Systematic Invested Plan (either monthly or quarterly).
70
Q. 6- In Which Fund Plan you have invested your money?
(1) Equity Fund (2) Small & Mid Cap
(3) Micro Cap (4) Sector fund
(5) others (specify)……………
Interpretation: Most of the investors have invested their money in Equity Funds and then go for Mico Cap Funds.
71
Q. 7- Why you invest your Money in this Plan?
(1) Good Rate of Returns (2) High Risk Cover
(3) Low Investment Amount (4) Good Term Plan
Interpretation: High risk cover is provided by company and rate of return is very good and
Then investment amount is very low.
72
Q. 8- Does company provides you better service?
(1) Yes (2) No
Interpretation: More than 60% respondents are satisfied by its service.
73
Q. 9- Do you feel that Company should do some Promotional Activities?
(1) Yes (2) No
Interpretation: The company should focus on Promotional Activities to increase the
Awareness level of its Brand.
74
Q. 10- How would you rate “DSP Black Rock” ?
(1) Excellent (2) Good
(3) Better (4) Poor
Interpretation: Most of the investors said it’s excellent but few of them said it’s poor.
75
Q. 11- What made you to invest in brand (other than DSP Black Rock)?
Unawareness............. Lack of sales executive……….
Low return……….. Other (specify)……
Interpretation: Due to lack of sales executive and Unawareness of the Company,
The investors invested their money in other companies.
76
Q. 12- Has the fund satisfied your expectation?
Agree ......... strongly agree .......... neutral...........
Disagree....... strongly disagree..........
Interpretation: Most of the respondents’ are satisfied with the schemes of DSP Black Rock.
77
QUESTIONNAIRE
Dear Sir/Madam,
I am Ritesh Singh a management trainee doing a survey on Mutual funds, requires your precious few minutes in order to complete my survey.
Name: _______________ Sex: Male Female
Age- (1) 25-35Yrs (2) 35-45Yrs (3) 45 and above
Occupation:
Businessman Service man
Professional Others (Specify)……......
Q. 1- Have you invested your money in “Mutual Fund” company?
(1) Yes (2) No
Q. 2- In which Mutual Fund Co. have you invested your money?
DSP Black Rock
Kotak Mahindra
HDFC
Reliance
Any Other (Please specify)………………..
Q. 3 If DSP Black Rock how did you come to know about this Co.?
78
(1) Friend (2) Family
(3) Advertisement (4) others (specify)……….
Q. 4- Why have you Invest your money in DSP Black Rock?
(1) Good Schemes (2) Brand Name
(3) More Profit (4) Any Others………………
Q. 5- Which Plan do you have of DSP Black Rock?
(1) SIP (2) STP
(3) Lump sum (4) others (Specify)................
Q. 6- In Which Fund Plan you have invested your money?
(1) Equity Fund (2) Top 100 Equity Fund
(3) Small & Mid Cap (4) Micro Cap
(5) Sector fund (6) others (specify)……………
Q. 7- Why you invest your Money in this Plan?
(1) Good Rate of Returns (2) High Risk Cover
(3) Low Investment Amount (4) Good Term Plan
Q. 8- Does company provides you better service?
(1) Yes (2) No
Q. 9- Do you feel that Company should do some Promotional Activities?
(1) Yes (2) No
Q. 10- How would you rate “DSP Black Rock” ?
79
(1) Excellent (2) Good
(3) Better (4) Poor
Q. 11- What made you to invest in brand (other than DSP Black Rock)?
Unawareness............. Lack of sales executive……….
Low return……….. Other (specify)………..
Q. 12- Has the fund satisfied your expectation?
Agree ......... strongly agree .......... neutral........... Disagree....... strongly disagree..........
Your Suggestion / Comments____________________________________________
____________________________________________________________________
80
LIMITATIONS
Some of the limitations of the project are listed as below:
1. The time period of just 2 months was the major limitation.
2. Due to the financial and time constraints a cluster analysis of the population so as to
get better results was not feasible.
3. It was difficult to break the ice with the common people initially. It was a daunting
task to convince them to fill in the personal details of the questionnaire where they
have to mention the monthly income, occupation etc.
4. To convince the people for a proper interviewing process is also difficult.
5. Compilation of data on competitor analysis was difficult due to non-availability of
correct information.
6. The figures have been taken as approximations.
81
CONCLUSIONS
1. Almost all the AMCs offer similar features and facilities with their Funds, therefore
for existing customers of any product of any AMC to shift to another AMC; this is
very rarely the criteria or reason.
2. The level of service in terms of delivering whatever is promised, fast response in case
of problems, is the most important benefit that the customers seek, from the AMC
they have a investment with.
3. Network reach and visibility of a company is a very important criterion for the
customer while investing. We can also conclude from our analysis that network reach
in terms of Branches and service is directly proportional to the market share in case
of Private Players.
4. In case of a new customer, if a company approaches it first for investing with them,
then there is a good chance for the company of getting many future businesses and
cross sales from the deal.
5. Aggressive Marketing is the key to increasing the market share in this area, since the
market has a lot of potential both in terms of untapped market.
6. Always DSP believes in its product differentiation and quality of its product. That’s
why their total product category, features and facilities are totally different to their
competitors. As taking example of some unique features like;
2 way sweep (automatic)
Any cheque payment
Return on your investment
82
SUGGESTIONS
1. Contract Sales Executive (CSE) should be trained to explain the product features and
its value added services to make customer’s product selection convenient.
2. Contract Sales Executive (CSE) should recommend right fund to the right investor so
as to ensure a high degree of satisfaction among the investors.
3. The company needs to make people aware about their products and the basic benefits
they can derive out of it. And also the differential features of its product as compared
to other compititors.70% of the people did not even know about the concept, benefits
and features of their investment.
4. The company should also focus on infrastructural funds as well as sector funds.
5. Quality of service has been rated highly important by all demographic and
psychographic factors as a reason for investment with a particular AMC, An AMC
needs to improve the services provided to its existing customers before attracting
more in the future and use word of mouth as a promotional tool to increase the sales
potential of its products.
6. The company should also focus on the Promotional activities in North India region.
It can be done by—
Advertisement (T.V, Newspaper and etc.)
Publicity
Public Relation
83
BIBLIOGRAPHY
www.DSPBlackrock.com
www.google.com
www.wikipedia.com
www.karvy.com
www.cams.com
84