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Submitted to Bangalore University, Bangalore
In partial fulfillment of the requirement For the award of the degree of
Submitted By
Under the Guidance of
Department of management studies SURANA College P G Centre, Bangalore Affiliated to Bangalore University, Bangalore 2004-2006
I owe a deep sense of gratitude and allegiance to Principal Prof. K.E. Radhakrishna and Dean of Studies Prof. H.R. Appannaiah for there encouragement and kind advice that came all along the completion of this report. I also express my heartfelt gratitude to HOD – Management Dr. H.V.S Raghavan for his enthusiastic co-operation, timely guidance and copious comments, which helped me to gain deeper insight into the horizons of this project. I also thank Mr. Vikas Pathania Branch manager, Mr. Abhishek Sinha consultant. Of Birla Sunlife Asset Management Company Ltd., Bangalore. It was there able-guidance and ever forwarding help and assistance, which has enabled me to attain success; I have been able to achieve this venture. I would be failing in duty if I do not express my gratitude to MR.VIJAYENDRA.S for his great sense of commitment to make the project report as systematic as possible. I thank also other members of teaching and non-teaching for their enriching ideas and suggestions. I owe a great deal of indebtedness to all my friends – my alter egos. Lack of space prevents me from thanking them individually. So to all of them I say a big thank you. Last, but far from least, I express my heartfelt gratitude to my beloved Parents, family members and those who directly or indirectly contributed their modicum in preparing this project work.
strength and weaknesses of the AMC in handling the financial operations. time constraints etc. Limitations of past records. Basically the scope of the study was limited to Bangalore Regional office of "Birla Sunlife Asset Management Company Limited". This research has been conducted to know and understand the business operations and Fund Diversification of BSLAMCL. Tables and Charts were drawn wherever required. An attempt is made to study the financial performance and the factors influencing the financial aspects. Project Title: "PORTFOLIO ANALYSIS OF BIRLA SUNLIFE ASSET MANAGEMENT COMPANY LIMITED". 7 . But consolidated financial reports of all the divisions in India were considered for analysis. Absolute Returns and Compound Annual Return Since Inception is the tools used as a yardstick for evaluating the financial condition and performance of the BSLAMCL. have their impact on the study. The researcher also extended his scope to analyze the liquidity position. Portfolio Performance and Position of the Asset Management Company and to know the strength & weakness of the Company and to assess the profitability of the BSLAMCL. For a systematic study.EXECUTIVE SUMMARY A study on Financial Performance of Birla Sunlife Asset Management Company is undertaken in order to know the financial. Inter branch comparison was not possible.
1 PARTICULARS INTRODUCTION 2 Mutual Fund Direct Investment 18-27 PAGE NO.TABLE OF CONTENTS SL. 13-16 HISTORY OF MUTUAL FUND The Different Types of Fund 3 PRODUCT PROFILE Risk Vs Reward Past Performance Legal structure of Mutual fund Systematic Investment plan Tax benefits of Investing in Mutual Fund 29-39 4 COMPANY PROFILE Back Ground Overview Vision Mission Management team Focus area Awards 41-51 4.NO.1 5 The Mckinsy's Seven S Model THE RESERCH DESIGN OF THE STUDY Statement of the Problem Plan of the Study Objective of the Study Methodology Limitations Scope 53-62 64-70 8 .
6 Measuring of Mutual Fund 72-105 DATA ANALYSIS AND INTERPRETATIONS Equity Fund Income Fund Balance Fund Monthly Income Plan Long term floating rate Fund Industry AUM above 8000 FINDINGS SUGGESTIONS AND CONCLUSION ANNEXURES BIBLIOGRAPHY 7 8 9 10 107 109-110 112-119 121 9 .
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The term 'mutual' is used in the sense that all its returns. and liquidity of investment and tax benefits. market. which undertakes informed investment decisions and provides experience and resources for directly accessing the capital market. equity shares.g. 1993. who have no contact with each other.INTRODUCTION OF MUTUAL FUNDS Mutual funds are financial intermediaries. knowledge. The raison of mutual funds is their ability to bring down the transaction costs. which acts as a watchdog. 13 . The advantages for the Investor's are reduction in risk.. A mutual fund is a pool of commingles funds invested by different Mutual funds are conceived as Investor's. institutions for providing small Investor's with avenues of investments in the capital Since small Investor's generally do not have adequate time. diversified portfolios. Investors achieve economies of scale. These pooled funds provide thousands of investors with proportional ownership of diversified portfolios managed by professional investment managers. Mutual funds are governed by the SEBI (Mutual Funds) Regulations. they have to rely on an intermediary. minus its expenses are shared by the fund's unit holders. consequential benefits of professional expertise. WHAT ARE MUTUAL FUNDS? A mutual fund is a type of financial intermediary that pools the funds of investors who seek the same general investment objective and invests them in a number of different types of financial claims e. corporate and government bonds and equity shares of joint stock companies. which collect the savings of Investor's and invest them in a large and well-diversified portfolio of securities such as money market instruments. The interests of the Investors are protected by the SEBI. money market instruments). By pooling their asse6s through mutual funds. expert professional management. bonds.
Diversification may take several forms. The function of mutual fund is not to insure its unit holders against losses by investments. Benefits of investing in mutual funds: 1. but to afford them the opportunity of investing small amounts in a large number of securities. Risk Reduction through Diversification:The old axiom that it is not wise to put all eggs into one basket applies here. Their investment decisions are based on extensive research of the market conditions and financial performance of the individual company and specific securities. especially for retail investors.. Mutual fund investing offers certain advantages over direct investing. Professional Investment Management :The money pooled in the mutual fund is managed by the professionals who decide the investment strategy on behalf of the unit holders. It may involve investing in different types of financial claims e. equity shares. 2.g. Mutual funds provide diversification benefits in a manageable. These professionals choose the investments that best match the investment objective of the scheme as described in the scheme's prospectus. compact way because each unit represents a pro rata share of the entire portfolio. As the market conditions and /or the expectation about the securities performance change. these professionals churn their portfolios over accordingly with a view to provide high returns to the unit holders.g..MUTUAL FUNDS V/S DIRECT INVESTING Unit holders of mutual funds always have a choice of direct investing. A single event may defy prediction but the mass remains always practically the same or varies in ways that can be predicted. bonds etc. investment in bonds issued by different companies. Availability Of Varied Portfolio Objectives:14 . or investment in securities offered by different issuers e. Elimination of risk by combination is the application of the so –called Law Of Large Numbers. Portfolio diversification is the major advantage stressed by mutual funds.
Unit Holders Account Administration And Services:A major service offered by the mutual funds is liquidity. These services include providing a variety of flexible and convenient plans to the investors like SIP. Convenience:Mutual funds provide investors with variety of products and increasingly broad array of customer services. Liquidity refers to the speed with which an asset can be converted into cash without much loss of its economic value. Apart from this. NAV of the scheme is to be calculated and reported daily. Mutual fund units are easy to buy and sell. 3. telephone and ATMs. SWP and SWP. This wide range of schemes arose over the years to meet the requirements of the investors with different financial objectives. Unit holders are updated on their investment status. Investors may purchase units either from agent or distributor or directly from the fund through its sales persons. The increasing breadth of mutual funds products and services offer investors a great deal of choice in picking up the scheme that is consistent with his riskreturn-liquidity requirements.There are more than 400 mutual fund schemes with wide variety of investment objectives and options available to investors in India. mutual funds provide many other services. They can also buy and sell over internet. They receive periodical 15 . SEBI requires the open ended fund to stand ready to redeem the units on a daily basis at its NAV based price. 4. AMFI has classified mutual fund schemes into 6 broad categories according to their basic investment objectives: • • • • • • Growth Income Balanced Liquid and money market Gilt Equity linked saving schemes (ELSS) Each of these categories can be further classified into more categories.
both equity and bonds. Reduction In Cost Of Investment:Average cost of managing a rupee will be much lower for mutual funds than for an investor managing a diversified portfolio all on his own. SEBI requires the placement of a fee table at the beginning of every offer document. Although there are no guaranteed returns and protection of capital. 7. As part of this regulation. Similarly balanced funds and equity funds generally offer higher returns as against instruments of comparable risk. Their fund portfolio is disclosed regularly. its investment methods and information about how to purchase and redeem units and information about risk the scheme is exposed to. This document describes the scheme's investment objectives. all mutual funds provide full and complete disclosures about the funds written offer document. Higher Returns:Mutual funds trade in securities.statements of their accounts. Expenses above the set limits cannot be charged to the unit holders. mutual funds are usually able to give better returns to investors than fixed income product. Regulatory Protection:Mutual funds are subject to strict regulations and oversight by SEBI. The low costs are due to standardization and higher economies of scale (arising on account of collective investment character. its investment policies. 5. Half yearly and annual reports are also published. 16 . Further the SEBI has set ceiling with regard to expenses which can be charged to the investors. bond funds offer higher returns to investors due to trading in bonds by funds. While bank deposits offer fixed returns. 6.
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The end of second phase was between 1987 and 1993 during which period 8 funds were established (6 by banks and one each by LIC and GIC). In 1978UTI 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. Punjab national bank mutual fund in august 1989. THE SECOND PHASE 1987 AND 1993:1987 marked the entry non UTI.bank ok Baroda in October 1992.UTI had total asset of Rs 6. Indian bank mutual fund November 1989.life insurance corporation establish its mutual fund in June 1989 but general insurance set up its mutual fund in December 1990.700 crores of asset s under the management (AUM).it was set up by the reserve bank of India and functioned under regulatory and administrative control of the reserve bank of India.HISTORY OF MUTUAL FUND INDUSTRY GROWTH OF MUTUAL FUNDS:The Indian mutual fund industry has passed through three phases. public sector mutual funds set up by public sector banks and life insurance corporation India (LIC) and general insurance corporation of India (GIC). By the end of 1988. State bank of India mutual fund is the first it is established in June 1987 followed by can bank mutual fund in December 1987. The first scheme launched by UTI was unit scheme 1964. bank of India in June 1990.028 crores at the end of 1994 and the number of schemes were 167. 18 . THE FIRST PHASE 1964 AND 1987:Unit trust of India was established on 1963 by an act of parliament . The first phase was between 1964 and 1987 when unit trust of India was the only player.This resulted in the total assets under management to grow to Rs 61.
As at the end of October 31. As on august end 2000. THE FOURTH PHASE 2000 TO SINCE:In February 2003.13.849 crores. The securities and exchange board of India (SEBI) came out with comprehensive regulation in 1993. The second is the UTI mutual fund ltd sponsored by SBI. Kothari pioneer mutual fund was the first fund to be established by the private sector in association with a foreign fund.the asset is 1. Currently there are 34 mutual fund organizations in India. This signaled a growth phase in the industry and at the end of financial year 2000. With bifurcation of the erstwhile UTI. assured returned certain other schemes. The share of the private players has risen rapidly since then.02.THE THIRD PHASE 1993-2000:The third phase began with the entry of private and foreign sectors in the mutual fund industry in 1993.Its registered with SEBI and functions under the purview of the mutual fund regulations. representing broadly the assets of us64 scheme. PNB. and with the setting up of a UTI mutual fund. One is the specific under taking of unit trust of India with asset under management of Rs 29. Several private sectors mutual funds were launched in 1993 and 1994. 1. the mutual fund industry has entered its current phase of consolidation and growth.000 crores of asset under the management. BOB. and LIC . which in March 2000 more tan Rs 76. conforming the SEBI mutual fund regulations and with recent mergers taking place among different private sector funds. 2003. 1.726 crores under 386 schemes 19 .835 crores as at end of January 2003. 32 funds were functioning with Rs. there were 33 funds with 391 schemes and assets under management with Rs. The specific undertaking unit trusts of India and does not come under the purview of mutual fund regulations. following the repeal of the unit trust of India act 1963was bifurcated into two separate entities.005 crores as total assets under management.26. which defined the structure of mutual fund and asset management companies for the first time.
The most important one was the emergence of unit trusts. 1880s was the period of boom for this innovate investment opportunity in UK. Unit trusts conform to the basic pattern of openended investment funds in UK. shortly after the Wall Street Crash. many of them are still around. Though some investment trusts failed during the British crash of 1890. In the USA many small investors lost their fortunes in the years following the Wall Street Crash of 1929. especially in stocks and bonds of American railways. most of them survived.MUTUAL FUND INDUSTRY IN UK:The very investment trust. Investment managers enjoyed huge powers about the sale and purchase of securities. In the last decade. The first unit trust appeared in 1931. the same advantage as the large capitalist" in its prospectus of 1868. By the end of 1997 there were $237 billion of assets managed by 1455 open ended funds. They were incorporated under the Companies Act. The years from 1900 to 1914 were marked by an increasing tendency on the part of British investment manager to invest their clients' funds in American securities. resulting in steep increase in volumes. British mutual funds sold a large proportion of their American investments and a large part of the money obtained from the sale of the American stocks and bonds was promptly invested in the war loans of the British government. With the advent of the First World War. New products are launched and newer distribution methods 20 . From 1914-1918. Though less remunerative. During the first period of its operation (till mid-1920s) mutual funds were in formative and experimental conditions. Foreign & Colonial. However. set out its investment aims "to give investors of moderate means. lots of changes have been observed in the industry. The competition in UK fund industry has increased due to low entry barriers encouraging new players. These trusts became popular mainly because of the range of investment opportunities they made available to the investors. this situation changed drastically. The pace of changes is very rapid. These investment trusts are close-ended funds. But not even one investment trust failed in those troubled years (1890s) in UK. By 1900 there were more than 100 investment trusts. some structural changes started taking place in the industry. this strategy enabled the survival of the industry.
This widened the scope of competition for mutual funds with banks on account of similarity in the product. was organized in 1893. Thus the mutual fund industry in UK is witnessing a restructuring wave and the outcome is powerful brand leaders. The third stage began in the 1970s. The first stage i. Another important happening of that time was the innovative steps taken by the funds to improve the quality of investor servicing. the most striking feature of this phase has been the innovation in the investment objectives.are explored. the share of close ended funds started shrinking in favor of open ended fund. Close ended funds were the dominant form of mutual funds to mobilize money.Wallace Alexander that seems to have originated many of the ideas adopted by mutual funds. The money market mutual fund was launched in this phase and this was in many respects close to the products offered by the banks. Like 1924s M. In the USA.e. Another significant development post 1970s has been the 21 . by the end of 1940s. New York and many other states. investment companies were formed in Boston. However it was the Alexander fund established in Philadelphia in 1907 by W. assets managed by mutual funds witnessed rapid and steady growth and mutual fund evolved into an established industry. In the second stage.I. However. MUTUAL FUND INDUSTRY IN USA:The origin of mutual funds in the USA could be traced to the private trustee system in Boston during the second half of 19th century. eg. Till this phase most of the money was mobilized under the objective of providing the benefit of diversification in equity investing. the Alexander fund began as an investment vehicle for a small circle of friends and eventually expanded to include the general public. As the economy of the USA grew. the Boston Personal Property Trust.T and State Street Investors mutual funds.. exchange privilege given to the investors to shift from one fund to another. the period before 1940s was the stage of infancy of the mutual fund industry. One of the first investment trusts. mutual fund industry evolved in three phases. During this phase open ended funds became the dominant form of mutual funds..
reduction or elimination of sales load. The total assets under management by the end of 1997 were $4465 billion managed by 6900 funds. THE DIFFERENT TYPES OF FUNDS Types of Funds Capitalization Funds Investments Funds Open Ended Schemes Close Ended Schemes Growth funds Growth & income funds Fixed income funds Balanced /equity funds Money market funds/ liquids Specialty / sector funds 22 . thereby increasing the mobility of investors.
Any time entry option. This provides ready liquidity to the investors and avoids reliance on transfer deeds. the fund continue to remain authorized investment vehicles. risk tolerance and return expectations. there is no cap on the amount you can buy from the fund and the unit capital can keep growing. These funds are not generally listed on any exchange. unit capital of open-ended funds can fluctuate on a daily basis. signature verifications and bad deliveries. growth fund and tax saving) as well as the number of units. Investors can buy or sell units at NAV-related prices from and to the mutual fund on any business day.There are wide verities of mutual fund schemes that cater to investor need. The mutual funds schemes can be classified according to their investment objective (like income fund. an open-ended fund allows one to enter the fund at any time and even to invest at regular intervals. the issuing company directly takes the responsibility of providing an entry and an exit. signature verifications and bad deliveries. The advantages of open-ended funds over closeended are as follows: A) Any time exit option. financial position. Such funds can issue and redeem units any time during the life of a scheme. open-ended schemes do not have a fixed maturity. B) Tax advantage though budget 2000 proposal envisage a tax rate of 20% dividend on distribution made by debt funds. OPEN-ENDED SCHEMES:Open-ended schemes do not have a fixed maturity period. Hence. This provides ready liquidity to the investors and avoids reliance on transfer deeds. 23 . Open-ended schemes are preferred for their liquidity. Any time entry option. Whatever the age. In equity plans there is no distribution tax. the issuing company directly takes the responsibility of providing an entry and an exit. These schemes have unlimited capitalization.
Growth funds generally incur higher risks than income funds in an effort to secure more pronounced growth. after the initial issue. 2] Fixed-Income Funds invest in government or corporate securities that offer fixed rates of return are 3] While funds that invest in a combination of both stocks and bonds are called Balanced Funds.CLOSE-ENDED SCHEMES:Close-ended schemes have fixed maturity periods. investors' expectations and other market factors CLASSIFICATION ACCORDING TO INVESTMENT OBJECTIVES:Mutual funds can be further classified based on their specific investment objective such as growth of capital. They invest in well-established companies where the company itself and the industry in which it operates are thought to have good long-term growth potential. Investors can buy into these funds during the period when these funds are open in the initial issue. However. current income or tax-exempt income. you can buy or sell units of the scheme on the stock exchanges where they are listed. 24 . and hence growth funds provide low current income. After those such schemes cannot issue new units except in case of bonus or rights issue. The market price of the units could vary from the NAV of the scheme due to demand and supply factors. GROWTH FUNDS:Growth funds primarily look for growth of capital with secondary emphasis on dividend. Such funds invest in shares with a potential for growth and capital appreciation. In general mutual funds fall into three general categories: 1] Equity Funds are those that invest in shares or equity of companies. safety of principal. 1.
Within the fixed-income category. Some fixed-income funds seek to minimize risk by investing exclusively in securities whose timely payment of interest and principal is backed by the full faith and 25 . Some invest in a dual portfolio consisting of growth stocks and income stocks. The investment strategies used to reach these goals vary among funds. convertible securities or fixed-income securities such as corporate bonds and money market instruments. Growth and income funds have low to moderate stability of principal and moderate potential for current income and growth. They are not suitable for investors who must conserve their principal or who must maximize current income.Some growth funds concentrate on one or more industry sectors and also invest in a broad range of industries. or a combination of growth stocks. High-yield funds. FIXED-INCOME FUNDS:Fixed income funds primarily look to provide current income consistent with the preservation of capital. 3. GROWTH AND INCOME FUNDS:Growth and income funds seek long-term growth of capital as well as current income. entail less stability of principal than fixed-income funds that invest in higher-rated but lower-yielding securities. They are suitable for investors who can assume some risk to achieve growth of capital but who also want to maintain a moderate level of current income. funds vary greatly in their stability of principal and in their dividend yields. which seek to maximize yield by investing in lower-rated bonds of longer maturities. These funds invest in corporate bonds or government-backed mortgage securities that have a fixed rate of return. 2. stocks paying high dividends. Growth funds are suitable for investors who can afford to assume the risk of potential loss in value of their investment in the hope of achieving substantial and rapid gains. preferred stocks. Others may invest in growth stocks and earn current income by selling covered call options on their portfolio stocks.
banks and corporations and Treasury Bills. these funds provide a very high stability of principal while seeking a moderate to high current income. The funds enable 26 . 5.and usually higher than yields on bank savings account. Although not insured.credit of the Indian Government. Fixed-income funds are suitable for investors who want to maximize current income and who can assume a degree of capital risk in order to do so. only the yield fluctuates. With yields that are generally competitive with . They invest in highly liquid. they are an attractive alternative to bank accounts. Because of their short-term investments. BALANCED FUND:The Balanced fund aims to provide both growth and income. money market funds invest only in highly liquid. Utilities or precious metals. 4. SPECIALTY/SECTOR FUNDS:These funds invest in securities of a specific industry or sector of the economy such as health care. technology. shortterm. leisure. MONEY MARKET FUNDS/LIQUID FUNDS:For the cautious investor. Money market funds are suitable for investors who want high stability of principal and current income with immediate liquidity. 6. virtually risk-free. they offer several advantages. Therefore. Money can be withdrawn any time without penalty. short-term debt securities of agencies of the Indian Government. Ideal for investors who are looking for a combination of income and moderate growth. money market mutual funds are able to keep a virtually constant unit price. These funds invest in both shares and fixed income securities in the proportion indicated in their offer documents. top-rated money market instruments.
other specialty funds such as index funds give investors a broadly diversified portfolio and attempt to mirror the performance of various market averages. a more conservative approach than investing directly in one particular company. Sector funds offer the opportunity for sharp capital gains in cases where the fund's industry is "in favor" but also entail the risk of capital losses when the industry is out of favor. While sector funds restrict holdings to a particular industry.investors to diversify holdings among many companies within an industry. 27 . Index funds generally buy shares in all the companies composing the BSE Sensex or NSE Nifty or other broad stock market indices.
28 .
the opportunity for investment growth that is possible through investments in mutual funds far exceeds that concern for most investors. the greater the potential reward. So risk has two sides: it causes the value of your investments to fluctuate. inflation or general economic conditions. This volatility can be caused by a number of factors -. you get what you pay for and you get paid a higher return only when you're willing to accept more volatility. that causes investors to worry. refers to the volatility -.the up and down activity in the markets and individual issues that occurs constantly over time. The first thing that has to be kept in mind is that when you invest in mutual funds. The loss of value in your investment is what is considered risk in investing. but it is precisely the reason you can expect to earn higher returns. and those with the greater chance of losing value are also the funds that can produce the greater returns for you over time.interest rate changes. You might find it helpful to remember that all financial investments will fluctuate. there is no guarantee that you will end up with more money when you withdraw your investment than what you started out with. 29 .RISK VS. But it is this very volatility that is the exact reason that you can expect to earn a higher long-term return from these investments than from a savings account. Even so. REWARD:Having understood the basics of mutual funds the next step is to build a successful investment portfolio. Or stated in another way. one should understand some other elements of mutual fund investing and how they can affect the potential value of your investments over the years. Different types of mutual funds have different levels of volatility or potential price change. Before you can begin to build a portfolio. We all fear the possibility that a stock we invest in will fall substantially. There are very few perfectly safe havens and those simply don't pay enough to beat inflation over the long run. That is the potential of loss is always there. Risk then. It is this variability. Here's why. At the cornerstone of investing is the basic principal that the greater the risk you take. uncertainty and potential for loss.
TYPES OF RISKS TYPES OF RISK Market Inflation investment Interest rate Exchange rate Employee Credit Government policy All investments involve some form of risk. Consider these common types of risk and evaluate them against potential rewards when you select an investment. 30 .
how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised. 5. the stock prices of both an outstanding. MARKET RISK:At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. A diversified portfolio can help in offsetting these changes. When this happens. This change in price is due to "market risk". 3. Changes in exchange rates may. CREDIT RISK:In short. INFLATION RISK:Sometimes referred to as "loss of purchasing power. INTEREST RATE RISK:Changing interest rates affect both equities and bonds in many ways.1. not more. 31 . or repay your principal when the investment matures? 4. Investors are reminded that "predicting" which way rates will go is rarely successful. have a positive or negative impact on companies which in turn would have an effect on the investment of the fund. EXCHANGE RISK:A number of companies generate revenues in foreign currencies and may have investments or expenses also denominated in foreign currencies. therefore. highly profitable company and a fledgling corporation may be affected. Also known as systematic risk. Inflation risk also occurs when prices rise faster than your returns." Whenever inflation rises forward faster than the earnings on your investment. you run the risk that you'll actually be able to buy less. 2.
CHOOSING A FUND:Mutual fund is the best investment tool for the retail investor as it offers the twin benefits of good returns and safety as compared with other avenues such as bank deposits or stock investing. It is. therefore.e. availability of qualified. Keep in mind the points listed below and you could at least marginalize your investment risk. Choose the wrong fund and you would have been better off keeping money in a bank fixed deposit. CHANGES IN THE GOVERNMENT POLICY:Changes in government policy especially in regard to the tax benefits may impact the business prospects of the companies leading to an impact on the investments made by the fund Effect of loss of key professionals and inability to adapt business to the rapid technological change. the any of the schemes are linked to the equity performance of such companies and may be more volatile than a more diversified portfolio of equities. necessary to attract key personnel and also to retain them to meet the changing environment and challenges the sector offers. An industries' key asset is often the personnel who run the business i. investments will be predominantly in equities of select companies in the particular sectors. 32 . trained and motivated personnel is very critical for the success of industries in few sectors. Having looked at the various types of mutual funds. Intellectual properties of the key employees of the respective companies. 7. INVESTMENT RISKS:The sect oral fund schemes. Given the ever-changing complexion of few industries and the high obsolescence levels. one has to now go about selecting a fund suiting your requirements. Accordingly.6. Failure or inability to attract/retain such qualified key personnel may impact the prospects of the companies in the particular sector in which the fund invests.
Thinking about your long-term investment strategies and tolerance for risk can help you decide what type of fund is best suited for you. READ THE PROSPECTUS:-The prospectus says a lot about the fund. how it has performed in the past and the kind of returns it is offering to the investor over a period of time. A reading of the fund's prospectus is a must to learn about its investment strategy and the risk that it will expose you to. has the fund manager or strategy changed recently? For instance. 33 . The same fund managers manage most successful funds. Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals. Most prefer the balanced schemes. Ask before investing. which invest in the equity and debt markets. How did these funds perform in the bull and bear markets of the immediate past? Tracking the performance in the bear market is particularly important because the true test of a portfolio is often revealed in how little it falls in a bad market. KNOW YOUR FUND MANAGER:The success of a fund to a great extent depends on the fund manager. the portfolio manager who generated the fund's successful performance may no longer be managing the fund. But remember that all funds carry some level of risk. Growth and pure equity plans give greater returns than pure debt plans but their risk is higher. Such plans are suspect to crashes in case the industry loses the market men's fancy. DOES IT SUIT YOUR RISK PROFILE? Certain sector-specific schemes come with a high-risk high-return tag. If the investor is totally risk averse he can opt for pure debt schemes with little or no risk. Just because a fund invests in government or corporate bonds does not mean it does not have significant risk.PAST PERFORMANCE:While past performance is not an indicator of the future it does throw some light on the investment philosophies of the fund. Also check out the two-year and one-year returns for consistency.
It is useful to understand the mutual fund structure in two developed markets-USA and the UK before discussing the structure in India. trustees. agents and investors to be aware of the special mature of this structure.HOW WILL THE FUND AFFECT THE DIVERSIFICATION OF YOUR PORTFOLIO? When choosing a mutual fund. Even small differences in fees can translate into large differences in returns over time. you should consider how your interest in that fund affects the overall diversification of your investment portfolio. The legal structure also drives the inter-relationships between these constituents. LEGAL STRUCTURE OF MUTUAL FUNDS:Mutual funds have a unique structure not shared with other entities such as companies or firms. it makes little sense to hold on to a fund that lags behind the total market year after year. because it determines the rights and responsibilities of the fund's constituents viz. It is important for employees. Finally. Maintaining a diversified and balanced portfolio is key to maintaining an acceptable level of risk. Similarly. Like stocks. the right equity mutual fund will pay off big -. 34 .if you have the patience. Ferret out information of a fund for at least three years. the fund and the asset management company (AMC). custodians. don't pick a fund simply because it has shown a spurt in value in the current rally. sponsors. WHAT IT COSTS YOU? A fund with high costs must perform better than a low-cost fund to generate the same returns for you. transfer agents and of course. The one thing to remember while investing in equity funds is that it makes no sense to get in and out of a fund with each turn of the market.
under one unit trust. Structure of Mutual Funds in India:Like other countries. For our purposes. open-end and closed-end funds operate under the same regulatory structure. a mutual fund may have several different schemes (open and close-end) under it i. The Management Company is the Indian equivalent of an AMC. which may be thought of as "the fund sponsors". mutual funds are set up as investment companies. Custodian is the entity that holds the fund's assets on behalf of the Management Company. Investment Trusts are structured as companies and provisions of the Companies Act are applicable to them. A mutual fund in India is allowed to issue open-end and closed-end schemes under a common legal structure. Open-end funds are in the form of Unit Trusts. Underwriter. The constituents of mutual funds in the USA are the Management Company. Only open-end management companies are technically called "mutual funds" in the USA. Unlike in the UK. A Management Group is a family of management companies owned by a group of people or a corporation. Management Group and Custodian. while close-end funds are in the form of corporate entities although called Investment Trusts. and are constituted along one unique structure as unit trusts. partnership or a unit investment trust. Underwriter of a fund is the distributor or the marketing company that sells the shares to brokers or to the public. In the UK. all these legal entities may be broadly understood as mutual funds. Separate regulatory mechanisms exist for both types of entities. where two distinct 'trust' and 'corporate' structures are followed with separate regulations. Therefore. The Investment Company in turn appoints a management company. which may be either a closed-end management company or an open-end management company. An investment company may be a corporation. India has a legal framework within which mutual funds must be constituted. They must also be authorized by the relevant 'Self-regulatory Organizations'. at any point of time.Mutual Fund Structure in the USA and UK:In the USA. Unit Trusts are regulated by the Securities and Investment Board. mutual funds have two alternative structures. in India. 35 .e.
which takes a small sum of money from you and invests it in mutual funds at regular intervals.The structure which is required to be followed by mutual funds in India is laid down under SEBI (Mutual Fund) Regulations. An Example:Month 1 2 3 4 5 Total Amount Invested 1000 1000 1000 1000 1000 5000 Purchase Price 10 12 15 18 15 70 No. a situation may improve before you actually notice it and an opportunity is lost. an SIP does away with the need or effort to time the market. there may be a doubt whether to wait for the circumstances to be better and when the markets are rising. If you opt for a SIP in a falling market and the market continues to fall. as the volatility is greater here.33 66. This simple programme has a number of advantages. an SIP does both automatically. and this helps in averaging out the volatility in the market. Overall a SIP is a simple device that helps you to save and invest in a disciplined manner without having to time the market. it can grow into a significant amount. The minimum amount can be as small as Rs 500 and the frequency of investment is usually monthly or quarterly. It can be thought of something akin to a recurring deposit where a part of your savings is automatically deducted from your account. Systematic Investment Plan (SIP):A SIP is nothing but a planned investment programme. while there certain benefits of an SIP. it is scary to invest. Firstly this is good for those who find saving an arduous task. Whether it is the regular act of saving or investing. A SIP does not guarantee returns or positive returns. to help build a pool of savings. By the process of regular investing one gets to invest in the highs as well as lows. an SIP imparts discipline to investing. of Units 100 83. The emphasis on averaging out in a SIP obviously makes it most useful in case of an equity fund.67 372. 1996. Thus. Secondly. When the market is falling. in due course of time. A SIP can be useful for a debt fund as well. Even if each investment is small. there are certain investment related ailments too. then your investments will suffer a loss on the whole.556 66.667 55.223 36 . This is where SIP helps the investor. So trying to find out the best time to invest is a tough task.
(the Act). Tax Benefits to the Mutual Fund:Birla Sunlife Mutual Fund is a Mutual Fund registered with the Securities and Exchange Board of India and hence the entire income of Mutual fund will be exempt from Income-Tax in accordance with the provisions of the Section 10(23d) of the Income-Tax Act. the investor gets back Rs.Average Sale Price = 70/5 = Rs. The Mutual Fund will receive all income without any deduction at source under the provisions of the Section 196(iv).223 * 16 = 5955. being an open ended equity oriented fund (c) Service Tax:The Mutual Fund shall be liable for payment of service tax as recipient of services on "Business Auxiliary Service" provided by distributors of mutual funds/agents. (b) Income Distribution Tax:No income distribution tax is payable by the Fund.5955. Tax Benefits of Investing in Mutual Funds:The Tax benefits that are available to the investors investing in the Units of the Plans are stated as follows:- 1.568 Thus for an investment of 5000.568 on liquidation. of the Act.00 What you actually pay = 5000/372. (a) Securities Transaction Tax:The Mutual Fund is liable to pay securities transaction tax at the prescribed rates on the value of transactions of purchase or sale of specified securities. 1961.43 Unit price at the beginning of the next month = Rs. the market value of investment = 372.16 Therefore.223 = Rs.2%. 37 . 13. The rate of service tax is 10.14.
if the unit of a Mutual Fund is held for a period of more than 12 months. (b) Tax on Capital Gains:As per the provisions of section 2(42A) of the Act. not apply to any income arising from the transfer of these units. Accordingly. held by the investor as a capital asset. 38 . is considered to be a short term capital asset. a unit of Mutual Fund. (c) Long term Capital Gains:As per section 10(38) of the Act. if it is held for 12 months or less from the date of its acquisition by the unit holder. income received by all the categories of unit holders in respect of units of the Fund will be exempt from income tax in their hands.To the Unit holders:(a) Tax on income:In accordance with the provisions of section 10(35) (a) of the Act. long term capital gains arising from the sale of unit of an equity oriented fund entered into a recognized stock exchange or sale of such unit of an equity oriented fund to the mutual fund would be exempt from income-tax. Exemption from income tax under section 10(35) of the Act would however. provided such transaction of sale is chargeable to securities transaction tax. it is treated as a longterm capital asset.
not liable to wealth tax. Gifting of Units:Units of Mutual Fund may be given as a gift and no gift tax and/or income tax will be payable by the donor or done. 1957 and therefore.Short-term Capital Gains: Wealth Tax:Units held under the Schemes of the Fund are not treated as assets within the meaning of Section 2(ea) of the Wealth Tax Act. 39 .
40 .
COMPANY PROFILE:Background:Birla Sun Life Asset Management Company Limited ("the Company") was incorporated on 5th of September 1994. Canada..Flagship company of Aditya Birla Group's Financial Services activities and Sun Life (India) AMC Investments Inc. The share capital of the Company is equally owned by Birla Global Finance Limited . insurance companies and high net worth investors. The Company manages the investment portfolios of Birla Mutual Fund. Overview:With the opening up of the Indian Economy. each catering to a specific need or segment.. BGFL is listed on The National Stock Exchange and The Stock Exchanges. The Company is also registered under the SEBI (Portfolio Managers) Regulations. Mumbai. The Company is registered with Securities and Exchange Board of India (SEBI) under the SEBI (Mutual Funds) Regulations. 41 . Canada. BGFL has the following major activities: Capital Market Corporate Finance Retail Finance General Insurance Advisory On behalf of the Aditya Birla Group. Birla Sun Life Distribution Company Limited and Birla Sun Life Trustee Company Private Limited. the Aditya Birla Group promoted Birla Global Finance Limited (BGFL) and became a committed player in the Financial Sector. which is a wholly owned subsidiary of Sun Life Financial Services Company Inc. India Advantage (Offshore) Fund. Birla Sun Life Asset Management Company Limited. 1993 and provides portfolio management services to high net worth investors. Mauritius and is providing investment advisory services to offshore funds. 1996 and the principal activity is to act as an investment manager to Birla Sun Life Mutual Fund. The Company is a joint venture between the Aditya Birla Group and Sun Life Financial Services of Canada. The Company encompasses a range of services. BGFL has been responsible for setting up successful joint ventures with Sun Life of Canada viz: Birla Sun Life Insurance Company Limited.
Director Mr. Desai. Sushil Agarwal. Kamlesh Vikamsey. Ravi Bubna.G.Management Team:The company has a very competent team of professional headed by Mr. Director Senior Management : Mr.K. who has over 30 years of experience in corporate banking. Director Mr. Arvind C Dalal. Dave. G. Joint Executive President & COO Mr. investment banking and fund management. S. N. Board of Directors: Mr. Managing Director. Vice Chairman Mr. K.Ajmera. CFO Company Secretary and Compliance Officer: Mr. to be the preferred employer in the industry and to be a catalyst for growth and excellence of the asset management business in India. Senior Vice President – Retail finance Mr. Vice President. B. Mitra. Senior Vice President – Corporate Finance Mr. E. Director Mr. B. Puranmalka. Sanjeev Bhargava. M. Vision statement: 42 . Parind Badshah Vision:To be the most trusted name in investment and wealth management.
While carrying forward this philosophy. Instead. his grandson. In so doing. As early as the 1940s.RajashreeBirla. build a better. it was unwise to keep on giving endlessly. this entails that the wealth that one generates and holds is to be held as in a trust for our multiple stakeholders. he felt that canalizing resources to ensure that people have the wherewithal to make both ends meet would be more 43 ." —"Mrs. With regard to CSR. Mission: To consistently pursue investor's wealth optimization by : • • • • • Achieving superior and consistent investment results Creating a conducive environment to hone and retain talent Providing customer delight Institutionalizing system-approach in all aspects of functioning Upholding highest standards of ethical values at all times Vision of BSLAMCL: "To actively contribute to the social and economic development of the communities in which we operate. it was already textured into our Group's value systems. Aditya Birla weaved in the concept of 'sustainable livelihood'. for the larger good of society. sustainable way of life for the weaker sections of society and raise the country's human development index. In his view. our founding father Shri G. this means investing part of our profits beyond business.D Birla espoused the trusteeship concept of management. Simply stated.To be the first reference of our customers as a leading integrated provider of complete financial services through superior value creation and technology. which transcended cheque book philanthropy. Chairperson" The Aditya Birla Centre for Community Initiatives and Rural Development Making a difference: Before Corporate Social Responsibility found a place in corporate lexion.
our projects are audited by reputed external agencies. Kumar Mangalam Birla institutionalized the concept of triple bottom line accountability represented by economic success. Strategy of BSLAMCL Our projects are carried out under the aegis of the "Aditya Birla Centre for Community Initiatives and Rural Development". reaching out to more than 2 million people annually. "Give a hungry man fish for a day. The footprint of our social work today straddles over 3.700 villages. In a holistic way thus. This also enables us to widen our reach. he would be able to feed himself and his family for a lifetime. The Centre provides the strategic direction. the interests of all the stakeholders have been textured into our Group's fabric. with milestones and measurable targets. The objective is to phase out our presence over a period of time and hand over the reins of further development to the people. he would be hungry again. Instead if you taught him how to fish. Projects are planned after a participatory need assessment of the communities around the plants. He would say. All our Group companies —Grasim. helping us gauge the effectiveness and providing excellent inputs. Hindalco. he will eat it and the next day. Indo Gulf and UltraTech have Rural Development Cells which are the implementation bodies. and the thrust areas for our work ensuring performance management as well.productive. Our community work is a way of telling the people among whom we operate that We Care. Each project has a one-year and a three-year rolling plan. environmental responsibility and social commitment. our chairman Mr." Taking these practices forward. Indian Rayon. Along with internal performance assessment mechanisms. Our focus is on the all-round development of the communities around our plants located mostly in distant rural areas and tribal belts. 44 . led by Mrs. who measure it on qualitative and quantitative parameters. Rajashree Birla.
toilets. biogas Safe drinking water Mother and child health Reproductive health Awareness building Self-Help Groups:SGSY : Dairy. bee keeping. special funds earmarked for human development and we recourse to many of these. Aggarbati making. draw from each other's experiences.the villagers. Jute project.Our partners in development are government bodies. and ensure that efforts are not duplicated. in their 5-year plans. we network and collaborate with like-minded bilateral and unilateral agencies to share ideas.Doctors visit once a week Medical camps :. Readymade garments. SIFSA. At another level. merit and technical education. training. Some of the agencies we have collaborated with are UNFPA. Basket making. village panchayats and the end beneficiaries -. Balwadis (pre-school) Adult education Non-formal education Continuing education Scholarships for girls. Habitat for Humanity International. CARE India. The Government has. durrie making Check dam Irrigation 45 . Health and family welfare Mobile clinics :. At the same time. Focus Areas Of BSLAMCL:Our rural development activities span five key areas and our single-minded goal here is to help build model villages that can stand on their own feet. district authorities. Unicef and the World Bank. smokeless chullahs. this provides a platform for advocacy.General and issue-based Health training and awareness Sanitation .
attitude and practices Awards CNBC TV 18 CRISIL – MUTUAL FUND OF THE YEAR AWARDS Open ended Income Fund – Birla Income Plus Open ended Income Short Term Funds –Birla Bond Plus 46 . Land development Soil and water conservation Pasture development Social forestry/ plantation activities/ nursery Horticulture Farmer training Infrastructure Development Roads Dams Community centres Houses Culverts Electricity Health centres Water channels Schools Social Causes: Widow / dowry-less mass marriages Women empowerment Awareness drives on knowledge.
1 Year Birla Gilt Plus .ICRA ONLINE MUTUAL FUND AWARDS 2005 Birla Gilt Plus .3 Year Birla India Opportunities Fund ICRA-MFR 1 Open Ended Sectoral SchemesTechnology (3 Year) Birla Income Plus ICRA-MFR 1 Open Ended Debt Scheme .long term category (one year) CNBC .Long Term (3 Year) ICRA Online Mutual Fund Awards 2004 Presented to Birla Income Plus: Ranked MFR 1 in open-ended debt schemes .Short Term .Liquid Plan ICRA-MFR 1 Open Ended Gilt Scheme .Liquid Plan ICRA-MFR 1 Open Ended Gilt Scheme-Short Term .TV 18 .BNP PARIBAS Mutual Fund of the Year Award 2004 Presented to Birla Gilt Plus (Regular Plan) (Gr): Best Performing Open-Ended Gift Fund (three years) Mutual Fund of the Year Award 2004 Presented to Birla Equity Plan: Best Performing Open-Ended Equity Tax Saving (ELSS) (one year) Mutual Fund of the Year Award 2004 Presented to Birla MIP (Gr): Best Performing Open-Ended Monthly Income Plan Fund (three years) 47 .
2004 Offshore.technology category (three Years) Presented to Birla Gilt Plus . 48 .long term category (one year) Presented to Birla India Opportunities Fund: Ranked MFR 1 in open-ended sectoral schemes .ICRA Online Mutual Fund Awards 2004 Presented to Birla India Opportunities Fund: Ranked MFR 1 in open-ended sectoral schemes .Liquid Plan: Ranked MFR 1 in open-ended gift schemes .short term category (three years) Standard & Poor's Fund Awards.technology category (one year) Presented to Birla Gilt Plus – Regular Plan: Ranked MFR 1 in open-ended gift schemes . India Advantage Fund Presented to Awarded 1st Place in the Standard & Poor's Five Years Offshore Funds Equity India Sector.short term category (one year) Presented to Birla Equity Plan: Ranked MFR 1 in open-ended equity linked savings schemes category (one year) CRISIL Best Fund Awards 2003 Presented to Birla Bond Plus: Best performing Open-end Income-Short Term Fund ICRA Online Mutual Fund Awards 2004 Presented to Birla Gilt Plus .Liquid Plan: Ranked MFR 1 in open-ended gilt Schemes .
R J Bhatt Awards 1999 Presented to BIRLA INCOME PLUS The Best Performing Scheme In the category of Income Funds the IRIS Mutual Fund Award in memory of R J Bhatt . Standard & Poor's Fund Awards. Business Standard Presented to 49 . R J Bhatt Awards 1999 Presented to BIRLA ADVANTAGE FUND The Best Performing Scheme The category of Growth Funds the IRIS Mutual Fund Award in memory of R J Bhatt. India Advantage Fund Presented to BIRLA MUTUAL FUND 1st place in the standard & Poor's Five Years (Dec 1996-Dec 2001). 2002 Offshore. R J Bhatt Awards 1999 Presented to BIRLA MUTUAL FUND The Best Mutual Fund the IRIS Mutual Fund Award in memory of R J Bhatt.
com 1998 Awards Presented to INDIA ADVANTAGE FUND The award for standing first place in the Standard & Poor's Micropal one year offshore Territories Equity India sector out of 36 funds. Standard & Poor's www.MR.1997-July 31.1997-July 31. 50 .2000.BHARAT SHAH Fund Manager of Year 1999.2000.micropal. The Best Equity Mutual Fund Scheme Award 1999 Motilal Oswal institute of wealth Creation Pioneers in Investor's Education Presented to BIRLA ADVANTAGE FUND Mr R J BHATT Mutual Funds Awards 2000 Presented to Birla Sunlife Asset Management Company Limited In recognition of BIRLA ADVANTAGE FUND The BEST GROWTH SCHEME Based on three years performance between August 1 . Mr R J BHATT Mutual Funds Awards 2000 Presented to Birla Sunlife Asset Management Company Limited In recognition of BIRLA INCOME PLUS The Best Scheme Income Scheme Based on three years performance between August 1 .
Emerging Markets Awards 2000
Presented to Birla Sun life Asset Management Company Limited For having secured the first place for its risk-adjusted performance over three years with the India Advantage Fund in the Standard & Poor's fund Services ,Asia excl. Japan Equity Sector. "Birla India Opportunities Fund wins recognition at the CNBC India- BNP Paribas Mutual Fund of the Year Awards 2002. Birla India Opportunities Fund (G) Plan B has been ranked by Moody's Investor Services as... The Best Performing Open-ended Equity Sector- Technology Fund for One Year period. "
THE SEVEN S MODEL:The Seven Framework first appeared in "The Art of Japanese management" by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey: It's sometimes known as the McKinsey 7S model. This is because, Tom Peters and Robert Waterman, were consultants at McKinsey& Co at that time. The model starts on the premise that an organization is not just Structure, but consists of seven elements i.e., Strategy, structure, systems, style, staff, super ordinate goals (also known as shared values), and skills. According to them, managers, need to take account of all seven of the factors to be sure of successful implementation of a strategy-large or small. All the seven Ss are interdependent, and proper attention should be paid to each one of them. Those seven elements are distinguished in so called hard S's and soft S's. The hard elements are feasible and easy to identify. They can be found in strategy statement, corporate plans, organizational charts and other documentations. The four soft S's however, are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard Structures, Strategies and Systems of the organization.
which develop over time and become relatively enduring features of organizational life 54 .The dominant values and beliefs.Strategy: Actions a company plans in response to or anticipation of changes in its external environment. Structure:Basis for specialization and co-ordination influenced primarily by Strategy and by organization size and diversity Systems: Formal and informal procedures that support the strategy and structure. (Systems are more powerful than they are given credit) The Soft S's: Style/Culture:The culture of the organization. consisting of two components:Organizational Culture:. and norms.Digram-1 DESCRIPTION:The Hard S's:.
what the company does best. how do a company's managers spend their time? fundamental responsibility of managers. Goals:. ways of helping to manage the careers of employees. Skills:The distinctive competences.More a matter of what managers do than what they say. usually stated at abstract level. processes. ways of expanding or shifting competences Shared Guiding concepts. and ways of shaping basic values of management cadre.. ways of introducing young recruits to the company. A helpful application is to determine the current state of each element and to compare this with the ideal state. a change in HR-systems like internal career plans and management training will have an impact on organizational culture (management style) and thus will affect structures.If one element changes then this will affect all the others. Management Style:. The 7-s Model is a valuable tool to initiate change processes and to give them direction. and finally characteristic competences of the organization. fundamental ideas around which a business is build-Values/ must be simple. socialization processes. have great meaning Super inside the organization even though outsiders may not see or Ordinate understand them. 55 . What are they focusing attention on? Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is a Staff:The people/human resource management-processes used to develop managers. For example. Based in this it is possible to develop action planes to achieve the intended state.
BSLAMC Limited.The mutual fund has been won the award for successfully implementing the channels to expand its geographical pressence despite underdeveloped communications infrastructure. Provide high quality customer convenience & service BSLAMCL has pursued the business strategy of becoming a universal mutual fund. BSLAMCL's Growth Strategy involves: Fully tap the growing market through higher incremental market share than competitor Adopt innovative strategies to expand the market Greater geographical penetration Introduction of new products in various segments. Structure:Structure of the Mutual Fund (BSLAMCL) The Mutual Fund Sponsors. 2. STRATEGY:BSLAMCL has also bagged the 'CNBC TV18 Award:-CRISIL Mutual Fund of the year Award for Birla Income Plus Plan B and Birla Bond Plus-Rental.SEVEN S MODULE OF BSLAML 1. Birla sun Life Insurance company Limited Trustee The Asset Management Company Custodian Statutory Auditors of the Schemes Legal Advisors 56 . It also follows the Strategy of building a diversified and derisked asset portfolio.
1994 and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on 1996. Chartered Accountants of Mumbai. Trustee: Birla Sun Life Trustee Company Pvt.The Mutual Fund: BSL mutual fund has been constituted as a trust in accordance with the provisions of the Indian Trusts Act. Statutory Auditors of the Scheme:This section is managed by S. 3.Billimoria & Co.B. The registered office of the AMC is situated in Mumbai.(Liability restricted to seed corpus of Rs. Canada.Limited. The Asset Management Company:BSL Asset Management Company Limited (AMC) was incorporated under the Companies Act. The Company is a joint venture between the Aditya Birla Group and Sun Life Financial Services of Canada. and Birla Global jFinance Ltd.1 lac). 1908. purchases and redemptiojs on all business days.. Canada. 57 . by the Sponsors as per the terms of the Trust deed. 80811 State Code 11 dated 1996. Liquidity:The fund offers NAVs. 1882. which is a wholly owned subsidiary of Sun Life Financial Services Company Inc. 1956 is the trustee to the Mutual Fund vide the Trust Deed. The share capital of the Company is equally owned by Birla Global Finance Limited Flagship company of Aditya Birla Group's Financial Services activities and Sun Life (India) AMC Investments Inc. Birla Sun Life Asset Management Company Limited ("the Company") was incorporated on Sep. 5th 1994. The Mutual Fund has been registered with SEBI. Sponsors:Sun Life (India)AMC Investments Inc. 1956 on Sep 5th. The Trust Deed has been registered under the Indian Registration Act. vide registration number Registration No.. a company incorporated under the Companies Act..
S V Prasad. etc Senior General Manager Senior General Manager Senior General Manager Senior General Manager BSLAMCL uses powerful-networked computer database known as finnacle. S. N.Systems:Exec. Assets Banking The decision-making systems within the organization can range from management intuition. to structured computer systems to complex expert systems and artificial intelligence. K. DIR. ORGANIZATION STRUCTURE Chairman Managing Director & CEO ( Joint Managing Director Joint Managing Director 4. N. Center Retail Banking Spl.Legal Advisors:For and on behalf of the Board DIR. Chief Executive Officer. Manager and Company Secretary. DIR. Director. Rajesh Ajgaonkar. Exec Director Exec. It includes: Senior Senior Computer Systems General General Operational Manager Systems Manager HR Systems. Director Exec Director Project Fin & Wholesale Corp. Mitra. The mutual fund has also needed to manage the technology risks associated with migration General Manager General Manager General Manager General Manager 58 . Jambusaria.
The dominant values and beliefs. to gain competitive advantage and to improve overall productivity and efficiency of the organization. Application of Information Systems to effectively market to their target customers and to monitor and control risks. which is very unique and powerful in the industry. how do a company's managers spend their time/ What are they focusing attention on/ Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers behave? In BSLAMCL. Internet Mutual fund etc Cost efficiency like reduction in traditional branch network/service staff. Management Style:More a matter of what managers do than what they say. the style adopted is a participative one where in information can flow upwards to the top management from down. 5.Staff:59 .Style:Style refers to 2 components: Organizational Culture:. The mutual fund also has its own performance review and reward systems. behavior. BSLAMCL has used Information Technology as a strategic tool for its business operations. attitudes. Enhanced level of customer services like 24/7 services. wider and focused market reach and opportunities for cross selling.from its legacy systems to the new technologies necessary to manage the increasing volumes of transactions at net speed. 6. In this way different consumer' wants. etc can be analyzed in a much more effective manner. and norms. which develop over time and become relatively enduring features of organizational life.
pay and benefit negotiations and other industrial relations matters. It dedicates significant amount of senior management time to ensure that employees remain highly motivated and perceive the organization as a place where opportunities abound. innovation is fuelled. BSLAMCL has a staff center which serves as a forum for grievances. A Six Sigma initiative has been undertaken for the lateral recruitment process to improve capabilities in this area. competencies and experience into the organization and met the requirements of rapidly growing businesses. BSLAMCL also undertakes lateral recruitment to bring new skills. BSLAMCL views its human capital as a key source of competitive advantage. teamwork is valued and success is rewarded. BSLAMCL encourages cross functional movement.The management believes that it has a good relationship with its staff. In addition to campus recruitment. Robust ability-testing and competency-profiling tools are being used to strengthen the campus recruitment process and match the profiles of employees to the needs of the organization. BSLAMCL attracts the best graduates from the premier business schools of the country. offering a wide range of career opportunities across the entire spectrum of financial services. Consequently. A revised performance appraisal system has been implemented to assist management in career development and succession planning. The size of the organization gives them the 60 . BSLAMCL is one of the most preferred employers at leading business schools and higher education institutions across the country. BSLAMCL boasts of its ability to nurture individuals and provide them the space and empowerment they need to hope their talents. the development and management of human capital is an essential element of their strategy and a key management activity. Employee compensation is clearly tied to performance and BSLAMCL encourages the involvement of all its employees in its overall performance and profitability through profit sharing incentive schemes based on the financial results. enriching employees' knowledge and experience and giving them a holistic view of the organ9isation while ensuring that the bank leverages its human capital optimally.
61 . BSLAMCL has a training center Khandala. which conducts a series of training programs designed to meet the changing skill requirements of its employees. Shared Values/Super ordinate Goals:BSLAMCL has constantly focused on building shareholder value as its primary objective. The training center regularly offers courses conducted by faculty.unique ability to provide fast growth and high responsibility early in one's career as well as multiple avenues to reach the top. academia and from the company itself. The key elements of their strategy have been to capitalize on new business opportunities.Skills:A company's skills can includes hard assets such as financial strengths and dominant market share. 7. Training programs are also conducted for developing functional as well as managerial skills. long-term value proposition. both national and international. but it takes the human and managerial input to translate these into a sustainable competitive advantage. These training programs include orientation sessions for new employees and management development programs for mid-level and senior executives. Their approach to shareholder value creation has extended beyond delivering near-term financial results. The competencies required at the entry level in BSLAMCL include: Drive for results Process Orientation Interpersonal Effectiveness Analytical Thinking Innovation & Team Effectiveness BSLAMCL has played an important role in setting up and supporting various programs imparting management education. drawn from industry. to developing a sustainable.
BSLAMCL constantly endeavors to create products that best met the specific needs of its clients and investors. They believe these elements are essential enablers of future growth. In addition. BSLAMCL is safe. The goal is to ensure that dealing with 62 . simple and efficient. sets for itself high standards of service and constantly strives to improve upon them. BSLAMCL also seeks to deliver these products effectively and efficiently. leverage technology.build an strong brand and distribution capability. It therefore. establish robust systems and processes and develop their human capital.
liquidity 63 .THE RESEARCH DESIGN OF THE STUDY TOPIC:- "PORTFOLIO ANALYSIS OF BIRLA SUNLIFE ASSET MANAGEMENT COMPANY LIMITED" INTRODUCTION:A study on Financial Performance of Birla Sunlife Assset Management Company limited is under taken in order to know the Financial Performance and Position.
Absolute Return and Compounded Annual Return Since Inception is the tools used as a yardstick for evaluating the financial condition and performance of BSLAMCL. So. Graphs are drawn for a better understanding of the concepts and theories. Monthly Income Funds. The Absolute Return and Compounded Annual Return Since Inceptio belonging to different Asset Management Companies are calculated and the Return Percentage of each Scheme is worked out. To know the strength and weakness of the BSLAMCL. This AMC is one of the leading Asset Management Company Limited in India and its doing extremely well in the Bangalore. PLAN OF THE STUDY:The Data Analysis and Interpretation is used to study the performance of the company. One Year or Two Year Performance of BSLAMCL's Schemes with Competitors. Balanced Funds. OBEJECTIVES OF THE STUDY: To study the financial position of the BSLAMCL To study the Financial Performance of the BSLAMCL. To compare the Three Months or Six Months.position of the AMC and to know the strength & weakness of the AMC & to assess the Profitability of the BSLAMCL. 64 . The BSLAMCL reduse the risk of no/low experienced investors by providing right information on concerned Schemes of BSLAMCL. Long Term Floating Funds. In BSLAMCL some of the schemes are not performing upto their potential in Equity Funds. To assess the Profitability of the BSLAMCL. these provides an opportunity to study the Portfolio Analysis of Birla Sunlife Asset Management Company Limited and find out the better avenues for better growth. STATEMENT OF THE PROBLEM:The Mutual Funds have become a runway success in the Investment Industryat present because there have moderate risk.
METHODOLOGY:For the purpose of preparing the report the necessary information collected are divided into two heads that is primary and secondary data. The study of 65 . Annual Returns are generally calculated on past financial Performance and thus forecast for the future is based on past data. Features of the funds. Secondary Data:- Past records Annual reports of the company Company's publications Websiteof BSLAMCL Analytical tools used: Absolute Returns of Asset Management Companies Compound Returs of Asset Management Companies LIMITATIONS: Some data are confidential to the AMC which was not possible to be used in the project. Primary data:- Primary data is collecting from Finance Executive and various departments of Bank. SCOPE:This project deals with finding out the risk of Investing in the funds. How to Invest in the Funds/Schemes? Performance of the funds.
in cases where the fund has distributed to its investors a significant amount of dividend in the Interim period. Some of the most common measure are- (a) Change in NAV:If an investor wants to compute the Return On Investment between two dates. Only then would he be in a position to judge correctly whether his fund is performing well or not. Formula: For change in Absolute termsNAV at the end of the period-NAV at the beginning of the period For change in percentage terms (Absolute change in NAV/ NAV at the beginning)* 100 Limitations:This measure does not always give the correct picture. he can simply use the Per Unit Net Asset Value at the beginning and end periods. but should be avoided for income funds and funds with Withdrawal plans. It is suitable for evaluating growth funds and accumulation plans of Equity and debt funds. whether he invests directly in the markets or indirectly through mutual funds. He would have to make intelligent decisions on whether he gets an acceptable return on his investments in the funds selected by him. There are many measures of fund performance. or if he needs to switch to another fund. One must find the most suitable measure depending on the type of fund. Bangalore. and make the right decisions. and calculate the change in the value of the NAV between the two dates in absolute and percentage terms. Measuring OF Mutual Funds:The investor would naturally be interested in tracking the value of his investments. (b) Total Return:66 . the stated objective of the fund and even depending on the current financial market conditions.Portfolio Analysis limited to Birla sunlife Asset Management Company Limited.
say a debt fund giving a gross return of 8%.It is defined as its net investment income divided by its net assets for the period. the expense ratio must be evaluated in the light of fund size. because it ignores the fact that distributed dividends also get reinvested if received during the year. It is not recommended for funds that concentrate primarily on capital appreciation.This measure corrects the shortcoming of the NAV Change measure. The investor's Total Return should take account of reinvestment of interim dividends. (c) The Expense Ratio:This Ratio is an indicator of the funds efficiency and cost effectiveness. For example. If a fund's income levels or returns are small.equity or fixed income. Formula:. and adding them to the NAV change to arrive at the total return. particularly debt funds. and differences of even 0. average account size and portfolio composition. 67 . simple Total Return as calculated here is still inadequate as a performance measure. by taking account of the dividends distributed by the fund between the two NAV dates. (d) The Income Ratio:This ratio is a useful measure for evaluating income-oriented funds. Formula: Given by ratio of Total Expense to Average Net Assets of the Fund Limitations: Though an important yardstick. funds with small corpus size will have a higher expense ratio affecting investor returns than a large corpus fund. the fluctuations in the ratio across periods require an average over 3-5 years be used to judge a funds performance. expense ratio becomes important.5% between two funds can affect the investors' returns. Also. Formula: For Total Return is [(Distribution + Change in NAV)/NAV at the beginning of the period]*100 Limitations:Although more accurate than NAV Change.
debt securities and cash/bank deposits. Cash also allows the fund a cushion against decline in the market prices of shares or bonds. consistent net redemptions. but also force the fund to 68 . because these not only indicate dissatisfaction on the part of investors. They also gain through greater risk bearing and management capacity. Small funds are easier to maneuver and can achieve their objectives in a focused manner with limited holdings.Limitations:The income ratio cannot be considered in isolation. (f) Fund Size:Fund size can affect performance. (g) Cash Holdings:Mutual funds allocate their assets among equity shares.(lesser of assets purchased or sold/ by the fund's net assets) Limitations: This measure is meaningful only when evaluated against the backdrop of the fund's investment objectives. (e) Portfolio Turnover Rate:This ratio measures how many times the fund manager turns over his portfolio by buying or selling of securities in the market. Formula: It is given by. A large cash holding allows the fund to strengthen its position in preferred securities without liquidating its other portfolios. Large funds benefit from economies of scale with lower expense ratios and superior fund management skills. A 100 percent turnover implies that the manager replaced his entire portfolio during the period in question. The fund must also guard against large. it should be used only to supplement the analysis based on the expense ratio and total return. and in terms of its ability to perform well on a consistent basis. The percentage of a fund's portfolio held in cash equivalents can be an important element in its successful performance.
For example. Limitation:While other costs are detailed in the fund prospectus or annual reports. The offer price is usually higher than the bid price and the difference is the transaction cost. Therefore transaction costs have a significant bearing on the fund performance and its Total return. the most practical way to track the performance of mutual fund schemes is to consult publications that regularly supply performance numbers. The fund sells securities at the bid price and buys them at the offer price. Mutual fund rankings and ratings and other evaluations of fund performance provide an important way for investors to compare their funds performance with other funds. All securities have a bid price and an offer price. these transaction costs are difficult to quantify or document. It becomes difficult for the fund to attain its objectives in such a situation. (h) Transaction Costs:Transactions costs include all expenses related to trading such as the brokerage commissions paid. However these are the ways by which a financial advisor can measure the performance of the funds. stamp duty on transfers. For the investors. Investors need to do their homework before making serious investment decisions. Useful information can be downloaded from such websites. There are many websites also dedicated to fund management industry in India. "Mutual Fund Insights". They should identify with their investment goals and evaluate a fund's ability to meet those goals within the investment timeframe. Another important publication is ICICI bank's Mutual Fund Review. 69 . registrars' fees and custodians' fees. a monthly publication of Value Research gives performance rankings of the schemes on the basis of total returns and risk measures for various categories of mutual funds. Availability of these data limits the use of this measure in practice. Agencies like Cris-Risk (a subsidiary of Crisil) publish mutual funds ranking in the newspaper periodically. representing a cost to the fund investors.maintain large cash reserves lowering return on the portfolio.
70 .
data analysis is carried out the date are first edited coded and tabulated for the proposed of analyzing them. pictures etc. Using sample statistical tools like percentage overages can collect the analysis.Mutual fund :. 71 . Data analysis is the process of placing the data in an ordered from.Birla sunlife :. combining them with the existing information and attracting meaning from them.DATA ANALYSIS AND INTERPRETATION Analysis And Interpretations COMPANY MARKET PLACE SAMPLE SIZE :. chats. The term interpretation the term explaining the meaning and significance of the data so arranged. In this research the researcher has analyzed the data using percentage and graph.Bangalore :.100 In order to extract meaningful information from the collected data. Alternatives the collected data may be analyzed by using diagrams graphs.
servant No. this shows that they could target in the near future.5) Occupation Occupation Business House wife Professional Govt . of responde nts No.servant 40 35 30 25 20 15 10 5 0 Business House w ife Professional Govt . 72 . of respondents 35 15 40 10 Inference:The survey conducted from the sample size of 100 revaluated that majority of the respondents where professionals.
00.0005.00.00.000 1.000-5.000 Above 5.00. of respondents 45 25 20 10 No.00. of responde nts Below 1. 73 .00.6) Annual Income Annual Income Below 1.00.00.000 3.000 1.000 3.00.00.0003.000 Above 5.000 45 40 35 30 25 20 15 10 5 0 No.00.000-3.00.000 Inference:The majority of the respondents fall in the range of below 1lack categories this shows that they are accessible and responsive to the promotional strategies of BSLAMC where market penetration can be ensured.
Awareness about BSLAMC Awareness level of BSLAMC Unaware Aware 80 70 60 50 40 30 20 10 0 No. this awareness level is quite low compared to the popularity of BSLAMC. this is due to the less aggressive marketing approach compared to other mutual fund. of respondents 25 75 No. 74 . of respondents Unaware Aware Inference: In is seen that 70% of the people in Bangalore are aware that BSLAMC has a mutual fund scheme where as 30% of them are unaware.7.
75 . The Aim of your investment is Aim of the investment To acquire assets To plan for children To meet periodical cash requirement To save for retirement 45 40 35 30 25 20 15 10 5 0 No. of respondents assets children cash retirement Inference:The majority of the respondents feel that the investment which they made should accommodate for the periodical cash requirement and liquidity of investment which will help them to get benefits from investment. of respondents 25 10 45 20 No.8.
of respondents Strongly Disagree agree Agree Strongly disagree Inference: 30% of the BSLAMC mutual fund customers were very happy with the after sales service offered by BSLAMC mutual fund and 20% customers felt that BSLAMC mutual fund provided service not good in this way they were disagree and 40% of customers felt that BSLAMC mutual fund provided service is very good and again 20% of customers were unsatisfied with BSLAMC service. Mutual fund provide a better return on investment than other investment Better returns Strongly agree Disagree Agree Strongly disagree 40 35 30 25 20 15 10 5 0 No. 76 . of respondents 30 20 40 10 No.9.
of respondents Inference:Majority of people 30% Bankers and family. this is basically based on experience of the person who has invested in the schemes earlier. friends. 77 .9. Source would you consult while making an investment decision? No. of respondents 25 15 30 30 Brokers and dealers Investment advisors Bankers Family and friends 30 25 20 15 10 5 0 Brokers and dealers Investment advisors Bankers Family and friends No. and for their investment decision. that person suggests whether to make the investment are not.
this is ever increasing rate of Land caused by the pace of development activities in Bangalore. of respondents 25 16 02 14 18 10 15 Inference• Most number of investors preferred savings current account as an investment instrument this is because of the high liquidity and safety that this type of instruments provides any first time investor starts his investment by opening a savings/current account. • Post office savings formed the fifth investment preferred by the Bangalore. Which of the following investment types you and your family holds ( as a % of your Savings) Type of investments No. In India un like the US and EUROPE. • Insurance is still seen as an investment as an investment rather than a risk protection product then it is understood from the interview with the investors that the high investment in insurance was also due to the rigorous marketing of these instruments by the insurance agents. • The second major investment done was in insurance. The major reason for the poor investments. 78 . • The last preferred investment by Bangaloreans is the investment in gold. • Fixed deposit formed the third major investment this investors preferred Fixed Deposit due to the higher return it provides safety and liquidity also played major part in the investors going for FD's But the disadvantage with FD is that if it is withdrawn before its term.10. of respondents A small savings B Fixed deposit C Gold D Post office E Insurance F Mutual Fund G Real estate 25 20 15 10 5 0 A B C D E F G No. • Mutual fund had a low investor's preference and secured the sixth position. In mutual fund is that the investors are not aware of the investments opportunities in mutual fund. This was partly due to the tax benefit that this instruments provides. as a rule. • It is also seen that real estate played the fourth major investment preferred as for as Bangalore was concerned.
of respondents Inference:• The major reason for not investing in mutual funds by the investors is that most of them are not aware of the investment options available to them in mutual fund. They fell that it is too complicated and difficult to understand. the investors preferred assured return investments even if the return from such investments were low. of respondents 30 10 15 45 No. They feared that with the rate of return fluctuating constantly there is no safety for their principle investment. 79 . and they are not aware of the schemes and how they operate etc. If you have not invested in mutual fund what is the reason for not investing Reason Risk Poor service No fixed return Unaware 45 40 35 30 25 20 15 10 5 0 Risk Poor service No fixed return Unaware No.11. • A small number of people also avoided mutual funds due to the poor service offered by them. • No fixed return was the fourth reason for the investors moving away from mutual funds. • The next majority feel that mutual funds are too risky an investment to be modes they feel that the safety aspect of the environment is lacking in mutual fund They feel that their principle amount itself is not safe in mutual fund.
To provide capital growth and income by investing primarily in a well diversified portfolio of dividend paying companies that have a relatively high dividend yield.77 2. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs.An Open-Ended Growth scheme Scheme Objective:.) 98.An Open-Ended Equity scheme Scheme Objective:-To achieve long term growth of capital at relatively moderate levels of risk through a diversified research-based investment approach Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.11 Benchmark Returns (%) 12.I.58 70. Asset Allocation Pattern of the Scheme :– 80 .SENSEX Return On Investment :- Date Aug 31.71 Benchmark Index :. Plans and Options :– Plans Options Normal Allocation (% of Net assets) 70-100 00-30 Nil Growth Plan Dividend Plan The Dividend Plan offers Payout and Reinvestment facility Performance of the Scheme :– NAV (as at July 31. 2005 Returns (%) 27. EQUITY FUND :1. BIRLA ADVANTAGE FUND :. Cash and money market instruments. BIRLA DIVIDEND YIELD PLUS :.
2005 Returns (%) 49.Crs) Incept.) 36. 2002 73.74 Benchmark Returns (%) 43. Plans and Options :– Plans Options Normal Allocation (% of Net assets) 90-100 Nil 00-10 Growth Plan Dividend Plan The Dividend Plan offers Payout and Reinvestment facility Performance of the Scheme :–NAV (as at July 31.63 10. 1998 Date 1995 Sectoral Alloct.73 Aug 10 2000 263. (Rs.31 Benchmark Index :.12 Feb 21.09 Oct 1.45 EQUITY FUND BAF BDYP BMCF DSP ML-E FIPP HDFC Pru Gr ICICI GP Asset Under Mg.(%) 81 .80 Sep 28. 2003 494. 669.28 Feb 7. Cash and money market instruments. 2003 143.41 Jun 19. 463.CNX 500 Return On Investment :- Date Aug 31. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs. 1994 278.Types of instruments Equities & equity related instruments Debt and money market instruments.60 Feb 24.
03 57.30 15.10 53.52 47.98 52.58 20.34 3 9 1 0 16 12 3 4 7 12 0 3 30 100 2.80 52.45 21.45 Incep.80 Comp.(%) 82 .25 2.25 2.64 5 2 6 7 8 4 0 10 6 8 6 3 36 100 2.46 22.61 68.76 26.26 60.FIPP HDFC PruICICI E 18.40 15.80 58.49 8 3 7 0 13 15 4 6 5 6 8 0 25 100 1.28 Gr 14.01 55.66 14. Assets Others 29 Total 100 Total Recur Exp.25 2. Annual Return Since 23.64 20. Ratio 2.38 20.70 16.55 49.64 60.70 59.25 EQUITY FUND:- Absolute Returns(% ) 3 Months 6 Months 1 Year BAF BDYP BMCF DSPML.25 2.85 GP 26.31 % of Net Assets Entry load 2.30 3 10 0 0 11 11 0 2 0 1 17 1 43 100 2.18 16.25 2.91 18.IT Pharma FMCG Media Banks/FIs Oil & Gas Telecom Cement Metals Auto Engineerin g 9 14 8 0 16 0 10 0 0 4 6 4 4 4 8 0 17 10 3 0 4 10 14 1 25 100 2.67 51.33 14 14 10 0 13 0 4 0 0 1 2 3 37 100 2.69 59.25 2.36 2 Years 52.58 22.61 52.88 62.30 Cu.57 21.
Birla Dividend Yield Plus :. Annual Return Since Incep.DSP Merill Lynch-Equity :.HDFC Growth PruICICI GP :.Franklin Indla Prima Plus :. BAF BDYP BMCF DSPML-E FIPP HDFC Gr :.Prudential ICICI Growth Plan EQUITY FUND 3 Months 80 EQUITY 1 Year 2 Years FUND 6 Months Comp.(%) ANNUAL RETURNS SINCE RETURN INCEPTION 70 60 50 40 30 20 1 0 0 70 60 50 40 30 20 10 Birla Advantage 0 Fund Birla Dividend Yield Plus Birla Mid Cap Fund DSP Merill Franklin LynchIndla Prima Equity Plus HDFC Growth Pru ICICI GP Birla Advantage Fund Birla Mid Cap Fund DSP Merill LynchEquity SCHMES EQUITY SCHMES Interpretation:The Birla Mid-cap fund has first highest absolute returns from last one or two years and Birla Advantage Fund has second highest absolute returns from last two years and Birla Dividend Yield Plus has third highest absolute returns from last two years compare 83 Franklin Indla Prima Plus Birla Dividend Yield Plus Pru ICICI GP HDFC Growth .Birla Advantage Fund :.Birla Mid Cap Fund :.
To generate consistent income.to DSP Merill Lynch-Equity. INCOME FUNDS:BIRLA INCOME PLUS :. II. The Birla Mid-cap fund and Birla Dividend Yield Plus has equal compound annual return since inception and that two funds are first highest compound annual return since inception compare to DSP Merill Lynch-Equity. Franklin Indla Prima Plus. through superior yields on its investments. HDFC Growth Equity funds. Franklin Indla Prima Plus. the Birla Advantage Fund has moderate risk to invest in Equity scheme and the Birla Dividend Yield Plus has high risk to invest in Equity scheme.The Birla Mid-cap fund has low risk to invest in Equity scheme.An Open-Ended Diversified scheme Scheme Objective:. HDFC Growth Equity funds. at relatively moderate levels of risk through a diversified research based 84 .
49 Benchmark Index :.02 5. Date Oct 21. 1995 Rating Profile(%) G-Sec 29 AAA/P1+ A Cash/Call 55 0 16 AA+/P1/AA/AA 1 DSPMLB Apr 29. 1997 22 25 16 0 3 TIIB June 24. 90% of Appreciation amount withdrawal at a quarterly (minimum 4) Performance of the Scheme :–NAV (as at July 31. Fixed withdrawal at monthly (minimum 6) or quarterly (minimum 4) 2. 1998 19 57 10 0 14 HDFC HI Apr 11. Cash and money market instruments. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs. 1997 19 40 34 0 6 85 .) 23. This income may be compensated by price changes of instruments in the portfolio. 2005 6.CRISIL Composite Balanced Fund Index Return On Investment :Returns (%) Benchmark Returns Date Aug 31.43 10.97 INCOME FUNDS:BIP Incep. Plans and Options :– Plans Options Normal Allocation (% of Net assets) Nil 100 Nil Growth Plan Dividend Plan 1. 1997 38 38 0 0 10 Pr ICICI-I June 19. Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.investment approach.
62 Exp.74 2.32 5.94 3.42 10.70 0.5 1.10 4.98 33 100 NA 14 100 4.32 10.78 0.HDFC HI I 5.89 10.96 3.5 1.93 3.89 2.44 3.44 2.28 Pr ICICI.47 3.44 11. Ratio Exit Load 0.22 BIP DSPMLB 7.78 BIP TIIB :-Birla Income Plus :-Templeton India Income Builder- DSPML-B :-DSP Merrill Lynch-Bond Pr ICICI-I :-Prudential ICICI .6 1.90 5.74 4.6 1.Others Total Average Portfolio 0 100 2.5 INCOME FUNDS:Absolute Returns(%) 3 Months 6 Months 1 Year 2 Years CARSI (%) 5.68 0.50 2.80 5.37 4.83 0 100 NA 0 100 NA Maturity(yrs) Total Recurring 1.88 TIIB 5.91 6.80 0.97 11.Income HDFC HI :-HDFC High Interest 86 .
Income HDFC High Interest INCOME SCHEMS 87 .INCOME FUNDS 3 Months 9 8 7 6 Months 1 Year 2 Years RETURNS 6 5 4 3 2 1 0 Birla Income Plus DSP Merrill Lynch-Bond Templeton India Prudential ICICI Income Builder .
after Templeton India Encome Builder.8 Birla Income Plus DSP Merrill LynchBond Templeton India Income Builder INCOME SCHEMES Prudential ICICI .4 ANNUAL RETURN SINCE INCEPTION 11. (%) 11. 11.e.HDFC High Interest Income INTERPRETATION:The Birla Income Plus has second highest of Compouded Annual Return Since Inception (%) i.) i.4 10.e. 310. Cr.48. after Prudential ICICI Income.2 11 10.22 %. 88 . it is not performing upto the potential because it has not done appropriate diversification of that fund.2 10 9. In annualised Return (%). It has moderate risk to invest in this scheme because since inception it is performing well.INCOME FUND Comp.6 10. Return Since Incep.8 10. It has second highest Asset under Management (Rs. Annu.
CRISIL Composite Balanced Fund Index Return On Investment :- Date Aug 31.21 17. Cash and money market instruments.00 Benchmark Index :. 2005) Normal Allocation (% of Net assets) 50-75 25-50 Nil Growth Plan Dividend Plan Payout & Reinvestment option Plans Growth Plan Dividend Plan NAV per Unit (Rs. Plans and Options :– Plans Options Performance of the Scheme :– NAV (as at July 31. BALANCE FUND BIRLA BALANCE :.An Open-Ended Balanced scheme Scheme Objective:.49 Benchmark Returns (%) Not Available 89 . 2005 Returns (%) 19.III.) 19.To balance income requirement with growth of capital through balance mix of investment in equity and debt at relatively moderate levels of risk through a diversified research based investment approach Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.
78 18.41 44.58 17. 2000 69 31 100 2. Annu.98 6 Months 10.74 35. 1999 67 33 100 1.94 118.Crs.66 Pr ICICI B 15.25 7. 2000 58 42 100 2.97 Oct 4.49 2 Years 31.62 Apr 17.68 Aug 10.32 36.26 37.00 2.97 BB DSP ML-B :.25 No Load Entry 2. Ration as a % of Net Assets Entry Load(%) 2.25 126.BALANCED FUND:BB Asset Under Mgmt.) Incep.85 38.89 17.65 May 14. 1999 60 40 100 2.62 12.65 14.98 35. 1999 68 32 100 2.38 DSP ML-B HDFC B IND VB Pr ICICI B BALANCE FUND:BB 3 Months 11.13 33.DSP Merrill Lynch -Balanced.84 16. (Rs.18 1 Year 31.47 15.91 Oct 7.25 2.Birla Balance. Date Equity Debt Total Total Recurring Exp.50 174.69 11. (%) DSP ML-B HDFC B IND VB 13.37 242. :.85 Incep. Return Since11.93 Comp. 90 .7 5.94 42.82 11.
BALANCE FUND 3 Months 50 45 40 35 30 25 20 15 10 5 0 Birla Balance DSP Merrill Lynch Balanced HDFC Balanced IND Vysya Balanced Prudential ICICI Balanced 6 Months 1 Year 2 Years RETURN BALANCE SCHEMES 91 .IND Vysya Balanced.Prudential ICICI Balanced INTEREPRETATION:The Birla-Balance has fourth highest of Compounded Annual Return Since Inception (%) i. :.e. 11. From last Three Months. HDFC Balanced and Prudential ICICI-Balanced. Six Months. two years. :. HDFC B IND VB Pr ICICI B :. after DSP Merrill Lynch –Balanced.58. It is high risk to invest in Birla balance because it is not performintg upto the potential compare to other competitors. it is not performing well because of lack of diversification of Birla-Balance fund.HDFC Balanced. one year.
BALANCE FUND Comp. Return Since Incep. (%) 20 18 16 14 12 10 8 6 4 2 0 Birla Balance DSP Merrill Lynch -Balanced HDFC Balanced IND Vysya Balanced Prudential ICICI Balanced ANNUAL RETURN SINCE INCEPTION BALANCE SCHEMES 92 . Annu.
Birla Sunlife Monthly Income is an open-end regular income scheme with the primary objective to generate regular income so as to make monthly and quarterly distributions to Unitholders and the secondary objective is growth of capital.38 MONTHLY INCOME PLAN:BSMI Asset Under 93 DSPMLSP PRIN MI Pr ICICI TMIF MI .50 Benchmark Returns (%) 10.IV.An Open-Ended scheme.66 10. MONTHLY INCOME PLAN :- BIRLA SUNLIFE MONTHLY INCOME :.CRISIL MIP Blended Index Return On Investment :- Date Aug 31.) 11. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs. 2005 Returns (%) 10. Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.37 Benchmark Index :. Scheme Objective:. Normal Allocation (% of Net assets) 00-15 15-100 Cash and money market instruments. Nil Plans and Options :– Plans Growth Plan Dividend Plan Options Payout & Reinvestment option Performance of the Scheme :–NAV (as at July 31.
33 5.5 Nil 0.60 Oct 14.80 100 1. 2003 9 68 23 Total Total Recurring Exp.47 Feb 21.) Incep.Crs.23 Aug 18.6 Nil 0.73 11. Ration as a % of Net Assets Entry Load(%) Exit Load(%) 100 2.5 MONTHLY INCOME PLAN:Absolute Returns(%) 3 Months 6 Months 1 Year 2 Years Comp.5 Nil 0.57 11.67 3.69 8.01 100 1. Date Equity Debt Call/Cash 354.43 10.75 Nil 0.45 3.6 Nil 0.02 Nov 17.Mgmt. Return Incep. Ann.62 May 23. 2002 10 79 11 455.27 9.98 10.65 BSMI DSPMLSP PRIN MI Pr ICICI TMIF MI 4. (%) 94 3. 2003 16 66 18 104.04 Since 11.35 3. 2000 12 81 7 265.10 100 1.27 4.18 11.73 3.36 3. 2000 14 66 20 96.64 .05 9.69 9. (Rs.45 8.76 9.41 9.58 10.11 8.94 100 1.52 4.
after DSP Merill Lynch Savings Plus.Tata Monthly Income Fund INTERPRETATION:The Birla Monthly Income Plan has first highest of Compounded Annual Return Since Inception (%) i. 11. It is low risky to invest in the Birla Monthly Income Plan because since inception it has performed well compare to competitors schemes. It has third highest absolute returns (%) i.e. Prudential ICICI-Monthly Income.64. Prudential ICICI-Monthly Income. Tata Monthly Income Fund. compare to DSP Merill Lynch Savings Plus. MONTHLY INCOME PLAN FUND 3 Months 12 10 6 Months 1 Year 2 Years RETURN 8 6 4 2 0 Birla Sunlife Monthly Income DSP Merrill Lynch PRINCIPAL Monthly Prudendial ICICI Savings Plus Income Monthly Income Tata Monthly Income Fund M ONTHLY INCOM E SCHEM ES 95 . PRINCIPAL Monthly Income.35%. BSMI :-Birla Sunlife Monthly Income DSPMLSP :-DSP Merill Lynch Savings Plus PRIN MI :-PRINCIPAL Monthly Income Pr ICICI MI :-Prudential ICICI-Monthly Income TMIF :.e. 9.
To generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments. The scheme may invest a portion of its fixed rate debt securities and money market instruments Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments. Ann. Return Since Incep.2 11 10. Cash and money market instruments. LONG TERM FLOATING RATE FUND :BIRLA FLOATING RATE FUND :.An Open-Ended scheme. Plans and Options :– Plans Options Normal Allocation(% of Net assets) Nil 00-100 Nil Growth Plan Growth and Dividend Plan Divedend Reinvestment 96 . (%) 11.4 11.2 10 Birla Sunlife Monthly Income DSP Merrill Lynch Savings Plus PRINCIPAL Monthly Income Prudendial ICICI Monthly Income Tata Monthly Income Fund ANNUAL RETURN SINCE INCEPTION MONTHLY INCOEM SCHEMES V.6 10.8 11.MONTHLY INCOME PLAN FUND Comp.4 10.8 10.6 11. Scheme Objective:.
5 DSPMLFR F May 12.48 Benchmark Returns (%) 0. 2003 10 61 20 2 7 0 100 NA HDFC FRI Jan 08.70 1. 2003 1 69 13 6 12 0 100 NA Pr ICICI LTFRF-A Sept 04. Ratio as a 0.85 % of Net Assets 0. 2003 1 64 2 10 0 100 0. 2002 5 66 22 4 3 0 100 1.04 NA 1.00 June 4. 2004 8 58 10 9 8 6 100 NA TFRLT Feb 02.option Performance of the Scheme :–NAV (as at July 31. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs.25 AA+/P1/AA/AA 23 97 .36 LONG TERM FLOATING RATE FUND BFRF Incep.56 10. Date Rating Prof (%) G-Sec AAA/P1+ A Cash/Call Others Total Average Portfolio Maturity(yrs) Total Recurring Exp.) 11.Crisil Liquid Fund Index Return On Investment :- Date Aug 31.36 Benchmark Index :. 2005 Returns (%) 0.
42 5.46 5.23 5.11 5.21 5.01 4.58 4.23 5.59 5.08 TFRLT 5.LONG TERM FLOATING RATE FUND Annul.01 4.29 5.18 5. Return (%) 3 Months 6 Months 1 Year 2 Years CARSI (%) BFRF 5.53 5.48 5.21 DSPML FRF 5.58 5.71 PrICICI LTFRF-PA 5. ICICI LT FRFPlan A 0 HDFC Floating Rate Income LONG TERM FLOATING RATE SCHEME 98 .56 5.16 5.16 HDFC FRI 5.91 LONG TERM FLOATING RATE FUND 3 Months 6 6 Months 1 Year 2 Years RETURN 5 4 3 2 1 Templeton Floating Rate LongTerm Birla Floating Rate Fund DSP ML Floating Rate Fund Pru.29 5.39 5.00 5.
after Templeton Floating Rate Long-Term. Templeton Floating Rate Long-Term. BFRF DSPMLFRF HDFC FRI :-Birla Floating Rate Fund :. 5.DSP ML Floating Rate Fund :.21 %. (%) ANNUAL RETURN SINCE INCEPTION 7 6 5 4 3 2 1 Templeton Floating Rate LongTerm Birla Floating Rate Fund DSP ML Floating Rate Fund Pru. Annu. ICICI LT FRF-Plan A. It has low risk to invest in the Birla Floating Rate Fund-Long Term Plan 99 . Eve from last Six Months the Birla Floating Rate Fund-Long Term Plan performing well.HDFC Floating Rate Income Pr ICICI LTFRF PA:-Pru. ICICI LT FRFPlan A 0 HDFC Floating Rate Income LONG TERM FLOATING RATE SCHEMES Since Inception (%) i.e. HDFC Floating Rate Income. Pru. It has first highest Six Months Annualised Return (%) compare to DSP ML Floating Rate Fund. Return Since Incep. ICICI LT FRF-Plan A TFRLT :-Templeton Floating Rate Long-Term INTERPRETATION:The Birla Floating Rate Fund has second highest of compunded Annual Return LONG TERM FLOATING RATE FUND Comp.
HDFC Mutual Fund.82 14042.76 0.09 Franklin Templeton 13344.82 873. Prudential ICICI Mutual Fund. 2006 9026.83 % and in 100 . it is performing well.17 7713. VI.73 13589. 2006 9811.e. Tata Mutual Fund.15 90.61 5.83 5.12 4.05 415.55 ICICI 14915. Franklin Templeton Investments.60 12707.00 % Change 7.13 881. In Crores) Companies are Birla Mutual Fund.84 Change 785. In Crores) Fund House Birla Mutual Fund HDFC Mutual Fund Prudential FEBRUARY 28. The Birla Mutual Fund has more % of change i.64 JANUARY 30.because from last Six Months of Annual Return and compunded Annual Return Since Inception (%). 7. INDUSTRY AUM ABOVE 8000 (Rs.84 Investments 16000 14000 12000 10000 8000 6000 4000 2000 0 Jan-06 Feb-06 Birla Mutual Fund HDFC Mutual Fund Prudential ICICI Mutual Fund Tata Mutual Fund Franklin Templeton Investments INTERPRETATION:The INDUSTRY AUM ABOVE 8000 (Rs.23 Mutual Fund Tata Mutual Fund 8129.94 13254.
Prudential ICICI Mutual Fund. CHANGE IN INDUSTRY AUM ABOVE 8000 Birla Mutual Fund HDFC Mutual Fund Prudential ICICI Mutual Fund Tata Mutual Fund Franklin Templeton Investments % CHANGE IN INDUSTRY AUM ABOVE 8000 Birla Mutual Fund HDFC Mutual Fund Prudential ICICI Mutual Fund Tata Mutual Fund Franklin Templeton Investments 101 .13 compare to HDFC Mutual Fund. Franklin Templeton Investments Companies.Rs in Crores 785. Tata Mutual Fund.
Birla MNC Fund 75% on February 26. 2006. Birla India Opportunities Fund 40% on March 16th. 2006. 2006. 102 . The declaration of dividend and payment subject to the approval of SEBI and the Board of the Directors of the Birla Sunlife Asset Management Company. 3. 4. Birla Midcap Fund 10% on January 28th.Dividend:The Board has recommended a dividend on Equity schemes:1. Birla Dividend Yield Plus 10 and 8% on April. 2. 2006.
103 .
22. Franklin Templeton is the first preference for the investors to invest in mutual funds and followed by BSLAMC which is in the second place for the investment preference. 7. As on April 31st 2006. Asset management Company/Fund does not indicate future performance of the schemes of the fund. 5.2 lakhs collectively made by them towards setting up the fund an accretions and addition to the corpus set up by the sponsors. Mutual funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the schemes will be achieved. Past performance of the sponsors.FINDINGS 1. Birla Monthly Income Fund. 104 . Birla Advantage Equity Fund. Birla Long Term Floating Rate Fund. Asset under Management have 4. Birla Mid-cap Equity Fund. 8. the NAV of the units issued under the schemes can go up or down depending on the factors and forces affecting the capital market. 3. The liquidity of the schemes investments ar4e inherently restricted by trading volumes in the securities in which it invests. 2. As with any securities.376 crores. Birla Income Plan.55. 6. Birla Dividend Yield Plus Equity Fund. From the study it was found that. The Sponsors are not responsible or liable for any loss resulting from the operation of the schemes beyond the contribution of an amount of Rs. 4. Birla-Balance Fund.
105 .
106 . 8. Find out the redemption costs before you invest so you won't be unpleasantly surprised when you redeem your shares. Before investment a person should identify the degree of risk he can take before investing in any of the plans of BSL mutual fund. 3. stability and low risk. If he redeem early or do not complete the plan. 7. For a customer who would like to invest in Debt fund. 2. 5. he may have to pay sales charges of up to 51% of your investment. as it is more risky. Some funds have been given names denoting safety. A person should always keep track of the money.SUGGESTIONS 1. 4. An ideal way for investment in mutual fund of BSLAMCL is through systematic investment plan (SIP). A person should never invest in periodic payment plans unless he arils virtually certain that he will not have to redeem early. It is important to track where the money is going. and in Equity funds it is best to opt for a dividend option. it is best to opt for a growth option. 6. Where is the fund manager investing your money? Excessive exposure to one particular sector should be avoided. A person should learn the costs of redemption. despite the fact that underlying investment in the portfolio are volatile and highly risky. A person should never be misled by the name of a fund. Before investing money it is always better to go through the fact sheet of all the plans of BSL Mutual fund. Sometimes investors are surprised to learn that they have to pay to get out of funds through back-end loads or redemption fees.
This is because of its good brand image and service which are essential elements for a successful organization.CONCLUSION:Mutual funds are very popular today. in that advertisements are playing a crucial role. So it could be concluded that investors are very much conscious about returns and risks involved in an investment. BSLAMCL is in the second position as far as investment preference is concerned. liquidity. bank deposits and postal savings. Investors look forward for the returns for an investment which is directly related with the risk factors in an investment. Because of its brand Image it is attracting more number of investors which has proved to be the advantageous factor for BSLAMCL promotional activities from BSLAMCL are becoming the source of information for investors. It could be concluded that people are well aware of BSL Mutual Funds when compared to other mutual fund companies. known for ease-of-use. It could be concluded that Mutual Fund's are going to be the future investment option. 107 . From the study it could be concluded that large number of people are opting for mutual funds as their investment option even though there are many other options like stock market. and unique diversification capabilities.
108 .
The objectives of (SEBI) are to protect the interest of investors in securities and to promote the development of and to regulate the securities market. History of Mutual funds in India and role of SEBI in mutual funds Industry:Unit Trust of India was the first mutual fund set up in India in the year 1963.ANNEXURES SECURITIES AND EXCHANGE BOARD OF INDIA SEBI INVESTOR ECUCATION PROGRAMME (INVESTMENT IN MUTUAL FUNDS) Introduction :Different Investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investor. As far as mutual funds are concerned. It may be 109 . government allowed public sectors banks and institutions to set up mutual funds. In early 1990s. securities and exchange Board of India (SEBI) Act was passed. The investors should compare the risk and expected yields after adjustment of tax on various investments while taking investment. In the year 1993. SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. they also carry certain risks. SEBI notified regulations for the mutual funds in 1993. Thereafter mutual funds sponsored by private sectors entitles were allowed to enter the capital market. There is no distinction in regulatory requirement for these mutual funds and all are subject to monitoring and inspections by SEBI. The risks associated with the schemes launched by the mutual funds sponsored by these entities are similar type. The regulations were fully revised in 1996 and have been amended thereafter time to time to protect the interest of investors. All mutual funds whether promoted by public sectors or private sector entitles including those promoted by foreign entitles are governed by the same set of regulations. Like all investment.
However. who is registered with SEBI. asset Management Company (AMC) and custodian. 2002).2002). The trust is established by a sponsor or more than one sponsor who is like promoted of a company. Also. BALANCE SHEET OF BSLAMCL AS ON 31ST MARCH (in Crs) 110 . Asset Management Company (AMC) approved by SEBI Managers the funds by making investments in various types of securities. which has sponsor. trustees. Mutual Fund Set Up With SEBI:A mutual fund is set up in the form of a trust.mentioned here that unit's trust of India9UTI) is not register with SEBI as a mutual fund (as on January 15th. The trustees of the mutual fund hold its property for the benefit of the unit holders. SEBI Regulations require that at least two thirds of the directions of Trustee Company or board of trustees must be independent that is they should not be associated with the sponsors. They monitor the performance and compliance of SEBI Regulating by the mutual fund. All mutual funds are requiring to be registered with SEBI before they launch any scheme. The trustees are vested with the general power of superintendence and direction over AMC. Custodian. Unit Trust of India (UTI) is not registered with SEBI (as on January 15th. 50% of the directors of AMC must be independent. holds the securities of various types of schemes of the fund in its custody.
665 536.810. Term deposits Borrowings a.333. B/P b. Savings bank deposits C. Demand deposits B.416 6. Bal of profit Deposits A.024 1. Revenue & other Reserve e.855 3.858 521.074.Liabilities Capital Reserves & Surplus a. Share premium c.746 111 .801. Capital Reserve d. Statutory Reserve b.949 19.640 739.752. Borrowings outside India Other liabilities a. Borrowings in India b. Inter office adjustment c. others(including provisions) Total 20002001 19682 95269 10386 76903 --7966 14 986602 158747 53326 774528 49147 49147 0 56563 14220 0 3352 38991 1207263 20012002 22036 109226 18443 80454 --10246 83 1637821 262186 188064 1187571 103279 102418 862 101297 38056 0 5565 57676 1973659 2002-2003 96303 563554 24943 80454 --456201 1956 3208511 273615 249700 2685195 4921866 419427 727589 1620758 81733 0 228951 1306769 10410992 2003-2004 96266 632065 55143 80216 --12734 463467 4816931 368944 379321 4068665 3430242 2841074 589168 1705693 103055 0 161917 1440721 10681197 2004-2005 96.338 5. interest accrued d.
793. Debentures & Bonds v. others Total 22212 12800 0 9412 36132 486 11474 3676 10 20486 1207263 38113 17385 0 20727 54346 512 22474 10514 11 20835 1973659 423934 140407 226997 56530 415828 0 184738 98701 50 132339 10410992 406073 154025 0 252048 752052 10347 195826 141403 80 404396 10681197 405.522.344 12.274. security ii.888 112 . Other approved securities iii. Govt.552 51. govet. Bal with banks in india 4. F.other Assets a. In India i. subsidary & joint venture vi.Money at call short notice 5.559 154. Cash credits.586 847063.006 365. Subsidary & joint ventures iii. Others B. Bill purchase & discounted b.A under construction c.Investments A. o/d & loans c.Assets 1. premises b. Shares iv.241 503. Tax paid d. term loans 2000-01 3145 69044 31800 235780 1748 341517 441668 441668 281494 0 16095 113722 0 30357 0 0 0 0 365734 70129 257767 37838 2001-02 10074 113092 54284 178312 3607 359369 818686 817891 407044 4149 12512 307008 0 87177 795 0 0 795 703146 108704 497091 97350 118466 2002-03 24590 152857 281821 675515 143852 1278635 3589108 3587896 227223 7046 190865 64363 60673 413445 1212 0 145 1067 4703487 165412 240251 4297824 198591 2003-04 33647 454967 81058 63743 15484 648899 3546230 3545373 2554858 3445 164241 568992 78068 175770 857 0 145 712 5327941 43764 313402 4970775 2004-05 37. Security ii.286 6.66 4.others 7.Advances a. other F. interest accrued c.797 29.A 9.Investment o/s india i. stationary & stamps e. Fixed Assets a.641 786.260 5.881 121.Bal with RBI 3.286 Priority sector advances include in 7 49737 8. Bal with banks o/s india 6. cash in hand 2. Inter office adjustments b.209.
insurance k. NP(loss) on revaluation of Investments d.4 215193 77167 123380 12262 2384 57466 22978 30571 -1460 -6 3730 1653 272659 936806 601624 291044 23557 2058 315883 79179 168338 11 -650 1024 67981 1. allowing and expenses g/ auditors fees and expenses h. telegrams. Postage. others IV.) 2002-03 2003-04 2004-05 889. advertisements and publicity e. interest on bal with RBI d. Interest on RBI/inter bank borrowings c. On bank property f. Operating Expenses a. interest/discount on advances/bills b. Miscellaneous income Total (I+II) Expenditures and Provisions 701.195. building & others e. telephone j. commission.8 1252688 96 04 306. Printing and stationary d. Rent. exchange & brokerage b.Interest Earned a. Interest on deposits b. dep. others II. other expenditure l.5 III. directors fees. NP (loss) on Sale of land. Other Income a.4 92 257. repairs and maintenance 66695 58050 2355 6289 15331 3637 1801 823 388 2479 7 14 50 687 1009 369 4066 83767 72544 3205 8018 33429 5171 3648 2417 1433 3642 18 29 54 2084 637 11584 2711 155892 138893 4784 12216 62258 14718 6628 3530 797 6409 16 31 151 3772 1415 16958 7833 794400 247971 18337 528092 201169 40302 11158 7472 5818 50594 13 150 852 10415 2518 57391 14487 25 2000-01 2001-02 85287 34791 40971 9462 64 19405 6708 10114 0 -13 2239 358 104692 124213 57091 55573 10867 683 22001 13953 1921 1377 -13 4161 601 146214 (In Crores. Income on investments c. NP(loss) on exchange transaction f.Profit &Loss Account of BSLAMCL Particular Income I . Payables & provisions for employees b. taxes & lighting c. Interest Expended a.1 23 113 . law charges i. Net profit on sale of investments c.
provisions and Contingencies Total expenses @ VI.7 11 1. Profit(loss) Total (III+IV+V+VI) 12137 82026 10530 104692 12908 117197 16110 146214 28679 218150 25830 272659 136501 995569 120618 1252688 38 918.104.22.168 V.6 48 163.8 96 114 .
00.000 Above 5. Annual income: Below 1.QUESTIONNIARE 1.000 House wife Govt. Address 3. 00. Awareness level of Birla sun life mutual fund Unaware 9. Mutual funds provide a better return on investment than other investments: Strongly agree Agree Disagree Strongly disagree 115 Aware .000 1. 7. 00. Occupational (please tick): Business Professional Others specify……………………. 00. of dependants: …………………… 5. 00. Martial status: :……………………… :…………………………… ……………………. The aim of your Investment is: To acquire assets such as Car. Educational qualification:………………………… 6. married Unmarried 4. House… etc To plan for children future Tom meet periodical cash requirement and to have liquidity of investment To save for retirement 10. No.000-3. 00.000 3. Name 2.servant 8.000-5.
If you have not invested in mutual funds what is the reason for not investing Risk Poor service No fixed return Unaware of investment options Fixed Deposits Stock Mutual fund Signature…………………… … 116 . Whom would you consult while making an investment decision? Brokers /dealers Banker's Investment advisors Family and friend/News Paper 12. Which of the following investments types you and your family holds (as % of your Savings) Small savings Gold Insurance Government security 13.11.
117 .
Magazine 5.com 2. Investment Management 3. Broucheres of BSLAMCL 7. Monthly Journal of BSLAMCL 6.BIBLIOGRAPHY 1.birlasunlife.amfiindia.SEBI. Manual of SEBI : Ravi Puliani : Preeti Singh : Prasanna Chandra : Business times : Connect : Broucheres : Investime : www.com : www. Other Website 10. Other Website 118 .com : www. The Investment Games 4. Monthly Investime of BSLAMCL 8. Website 9.
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