Professional Documents
Culture Documents
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INTRODUCTION
Marketing research is the systematic and objectives search for and analysis of information relevant to the identification and solution of any problem in the field of marketing. With the increased complexities of business activity marketing research too has been growing in complexity and it has emerged as a highly specialized function of marketing Management. Today carrying out research relating to customers necessitates specialized skills and sophisticated techniques. Branding means giving a specified name to a product or group of product from one seller. In financial sector branding can be done on the basis of performance, track record and availability of distributors In a specific sense, product awareness includes those activities that supplement both personal meeting and advertising, and coordinate them and make them effective, such as displays, shows, demonstrations and other non-recurrent efforts not in the ordinary routine. The project report aims to aware the people about mutual fund and creating a brand of the company so that the market share of the company could improve. To suggest the interested investors about the different schemes and NFO of the company according to their risk appetite so that their money could increase at the requirement. The Project was of significance to me as it helped me to get an insight into the working of a Mutual Fund as well as the returns calculation.
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It is required of a management student, to undertake a project to the norms prescribed by the University of Pune for the accomplishment of MBA course. It is peeps into the concerned area and scrutinizes & analyses the related works, methods, problems and situations which surrounds the concern topic. The report constitutes a part of M.B.A. examination to be evaluated. In pursuance of said requirement, I under went my summer training for two months period commencing on 26th May to 26th July at Franklin Templeton Investment, Patna (Bihar
The topic for my project was to study Product awareness of Franklin Templeton Investments as to find out the investment habits of common people and to study all features of NFO to aware the schemes in PSU Bank channel. The project was entitled to me by the FT. Company gave the questionnaire for survey to me. I have tried to give my best to the project work & thus I am certain, may believe, when a need arises tomorrow in whatsoever organization, I am with my best experience collected during my project work is going to be of immense help.
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PRODUCT AWARENESS
Product awareness that can communicate product concepts and help position the product in customer mind In other words, the customer should be able to identify or recall its whenever he or she thinks of the product class. The term product awareness refers to what a product or brand means to consumers and what they experience in purchasing and using it.
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1.3
The project was undertaken at FRANKLIN TEMPLETON INVSTMENTS Patna branch considering the following need To study the investment habits of common people. To know that which AMC is doing more Business through PSU Banking channel. To aware the product during NFO. Awareness about FRANKLIN TEMPLETON INVESTMENT schemes in PSU Banks. I am sure that the project will definitely add value to the potential investor while taking investment decisions by giving insight about the mutual funds.
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Meaning of Research:
Research in common parlance refers to a search for knowledge. The Advanced Learners Dictionary of Current English lays down the meaning of research as a Careful investigation or inquiry especially through search for new facts in any Branch of knowledge.
specific topic. In fact, research is an art of scientific Investigation. Research is an academic activity and as such the term should be used in a
technical sense.
problems, formulating hypothesis or suggested solutions; Collecting, organizing and evaluating date; making deductions and Reaching conclusion; and at least carefully testing the conclusions to determine whether they fit the formulating hypothesis. According to Phillip Kotler, it is a systematic design, collection, Analysis of
the customer and the marketer through information Used to identify and public to the marketer through information used to identify and define marketing opportunity and the problems; generate, redefine action; monitor marketing action; monitor marketing performance and improve Understanding of marketing as a process.
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Objectives of Research:
To understand the concept, working, types, fund structure, constituents, legal, and regulator environment of Mutual Funds. To acquire knowledge on the fund distribution and sales practices, accounting, valuation and taxation procedure of Mutual Funds. To understand about Investment Management. To learn about the investment products, principle of financial planning and Investment Advisory. To measure and evaluate Mutual Funds performance and also recommend Strategies for investors. To understand the SIP route of investment.
Data Source:
The research plan can call for gathering secondary data, primary data or both. Secondary data is the data, which was collected for another purpose, and already exist somewhere. Primary data is gathered for the specific purpose of for a specific research project.
Secondary Data:
The secondary data means data that are already available i.e. they refer to the data which have already been collected and segregated by someone else. 8 I.M.R.T
Research Approaches:
The approach for this research was the data which was collected from the respective fact sheets of the AMCs, various websites etc.
Data Collection:
The data for the analysis is majorly collected by the primary research i.e. personal interviewe&survey. The data for the study is also being collected by the research reports (value research).The analysis is done from the study of the fact sheets of the funds provided by Franklin Templeton research team in Patna and also from the fact sheets of the AMCs .Magazines and newspapers where also used for the same.
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The scope of the project is limited to only mutual fund industry, awaring people about different funds of FRANKLIN TEMPLETON INVESTMENT & advising investors according to their ages, earnings, savings, and their risk taking appetite. The different funds, which have been taken for study, can be classified as Equity funds, Balanced funds, Debt funds & Liquid funds.
LIMITATIONS:
The project was undertaken at FRANKLIN TEMPLETON INVESTMENT. The data is so confidential that there are certain limitations on getting the data and on disclosing it. Also the duration of two months for completion of the project is not sufficient to cover all schemes. This study is limited to only Patna city. Some of the respondents could have given biased response when approached. Time being a constraint, only a limited area could be covered.
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INDUSTRY PROFILE
Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing in securities in accordance with objectives as disclosed in Offer document. Investments in securities are wide spread across a wide crosssection of Industries and sectors thus risk is reduced. Mutual fund issues units to the Investors in accordance with quantum of money invested by them. Investors of Mutual Funds are known as unit holders. The investors in proportion to their investments share the profits or losses. Mutual Fund is required to be registered with Securities and Exchange Board of India (SEBI).
Thus, a mutual fund is a collective investment process. An Asset Management Company (AMC) collects many investors money. It invests this money in various securities to generate returns for the investors. Investors get the net returns after deducting the related expenses. If there is any loss, it would also be borne by the investors. An Asset Management Company (AMC) manages the pool of money; therefore, it is also an indirect form of investment for investors.
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2.2 Mutual Fund industry shares in GDP-THE GLOBAL SCENARIO: Country Australia USA Brazil UK South Korea India Japan % 87 72 30 23 21 6 5
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Savings
Unit holders
Unit s
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There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer, which are unmatched by most other investment avenues. We have explained the key benefits in this section. The benefits have been broadly split into universal benefits, applicable to all schemes and benefits applicable specifically to open-ended schemes.
Professional Management Diversification Convenient Administration Return Potential Low Costs Liquidity Transparency 16 I.M.R.T
Flexibility Choice of schemes Tax benefits Well regulated Reduction in risk Reduction of costs
DISADVANTAGES
While the benefits of investing through mutual funds far outweigh the disadvantages, an investor and his advisor will do well to be aware of a few shortcomings of using the mutual funds as investment vehicles.
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The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Reserve Bank and the Government of India. The objective then was to attract the small investors and introduce them to market investments. Since then, the history of mutual funds in India can be broadly divided into three distinct phases.
partially the first open-end scheme in the country, now moving towards becoming fully open end.
of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. These mutual funds helped enlarge the investor community and the investible funds. From 1987 to! 9293, the fund industry expanded nearly seven times in terms of Assets under Management,
More investor friendly regulatory measures have been taken both by SEBI to protect the investor and by the Government to enhance investors returns through tax benefits. A comprehensive set of regulations for all mutual funds operating in India was introduced with SEBI (Mutual Fund) Regulations, 1996. These regulations set uniform standards for all funds and will eventually be applied in full to Unit Trust of India as well, even though IJTI is governed by its own UTI Act. In fact, UTI has been voluntarily adopting SEBI guidelines for most of its schemes. Similarly, the 1999 Union Government Budget took a big step in exempting all mutual fund dividends from income tax in the hands of investors. Both the 1996 regulations and the 1999 Budget must be considered of historic importance, given their far-reaching impact on the fund industry and investors. 1999 marks the beginning of a new phase in the history of the mutual fund industry in India, a phase of significant growth in terms of both amounts mobilized from investors and assets under management. Consider the growth in assets as seen in the figures below:
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By Investment Objectives
Growth schemes Income schemes Balance schemes Money market schemes
Other schemes
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Tax saving schemes Special schemes Index schemes Sector specific schemes
Open-ended schemes
These funds are sold at the NAV based prices, generally calculated on every business day. These schemes have unlimited capitalization, open-ended schemes do not have a fixed maturity - i.e. 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. Open-ended funds are bringing in a revival of the mutual fund industry owing to increased liquidity, transparency and performance in the new open-ended funds promoted by the private sector and foreign players. Open-ended funds score over close-ended ones on several counts. Some of these are listed below: a) Any time exit option: The issuing company directly takes the responsibility of providing an entry and an exit. This provides ready liquidity to the investors and avoids reliance on transfer deeds, signature verifications and bad deliveries. 23 I.M.R.T
b) Tax advantage: Though Budget 2004 proposals envisage a tax rate of 20.91 % ( Corporate investors) and 13.06875 %( Non-Corporate investors) on dividend distribution made by the Debt funds, the funds continue to remain attractive investment vehicles. In equity plans there is no distribution tax. c) Any time entry option: An open-ended fund allows one to enter the fund at any time and even to invest at regular intervals (a systematic investment plan). The open ended funds offered by Franklin Templeton Mutual Fund are Liquid Plan, Income Plan, Gilt-Treasury, Gilt-Investment, Balanced Fund, Growth Fund, Tax Plan, FMCG Fund, Technology Fund, Monthly Income Plan, Child Care Plan, Power and Short Term Plan
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Equity Funds invest in shares or equity of companies. Fixed-Income funds invest in government or corporate securities that offer fixed rates of return. Balanced Funds invest in a combination of both stocks and bonds.
i) Growth Funds
These funds seek to provide growth of capital with secondary emphasis on dividend. They invest in shares with a potential for growth and capital appreciation. Because 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, growth funds provide low current income. Growth funds generally incur higher risks than income funds in an effort to secure more pronounced growth.
These funds may invest in a broad range of industries or concentrate on one or more industry sectors. 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. They are not suitable for investors who must conserve their principal or who must maximize current income.
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convertible securities or fixed-income securities such as corporate bonds and money market instruments. Others may invest in growth stocks and earn current income by selling covered call options on their portfolio stocks. Growth and income funds have low to moderate stability of principal and moderate potential for current income and growth. 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.
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.
iv) Balanced
The Balanced fund aims to provide both growth and income. These funds invest in both shares and fixed income securities in the proportion indicated in their offer documents. Ideal for investors who are looking for a combination of income and moderate growth.
Money market funds are suitable for investors who want high stability of principal and current income with immediate liquidity.
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, other specialty funds such as index funds give investors a broadly diversified portfolio and attempt to mirror the performance of various market averages. Index funds generally buy shares in all the companies composing the BSE Sensex or NSE Nifty or other broad stock market indices. They are not suitable for investors who must conserve their principal or maximize current income.
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A summary is presented in the table below of the various funds and their investment objectives.
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Time Horizon
Risk Profile
Typical Investment Pattern Equity (%) Debt (%) Money Market Inst./Others (%) 80-100 0-20
Yes Yes
No Yes
ShortTerm Medium -Long Term Long Term Long term Long term
0 0
The SEBI (Mutual Funds) Regulations 1993 define a mutual fund (MF) as a fund established in the form of a trust by a sponsor to raise monies by the Trustees
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through the sale of units to the public under one or more schemes for investing in securities in accordance with these regulations. These regulations have since been replaced by the SEBI (Mutual Funds) Regulations, 1996. The structure indicated by the new regulations is indicated as under. A mutual fund comprises four separate entities, namely sponsor, mutual fund trust, AMC and custodian. The sponsor establishes the mutual fund and gets it registered with SEBI. The mutual fund needs to be constituted in the form of a trust and the instrument of the trust should be in the form of a deed registered under the provisions of the Indian Registration Act, 1908. The sponsor is required to contribute at least 40% of the minimum net worth (Rs. 10 crore) of the asset management company. The board of trustees manages the MF and the sponsor executes the trust deeds in favor of the trustees. It is the job of the MF trustees to see that schemes floated and managed by the AMC appointed by the trustees are in accordance with the trust deed and SEBI guidelines.
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Mutual Fund
Holds unit-holders in MF enter into Holds unit-holders SEBI and ensure an agreement with in MF enter into an agreement with compliance sebi and ensure complience Floats MF funds manages the fund as per SEBI guidelines and AMC agreements
Custodian
Registrar
hhhh
Distributors
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Managing Risk
Mutual funds offer incredible flexibility in managing investment risk. Diversification and Automatic Investing (SIP) are two key techniques you can use to reduce your investment risk considerably and reach your long-term financial goals.
Diversification
When you invest in one mutual fund, you instantly spread your risk over a number of different companies. You can also diversify over several different kinds of securities by investing in different mutual funds, further reducing your potential risk. Diversification is a basic risk management tool that you will want to use throughout your lifetime as you rebalance your portfolio to meet your changing needs and goals. Investors, who are willing to maintain a mix of equity shares, bonds and money market securities, have a greater chance of earning significantly higher returns over time than those who invest in only the most conservative investments. Additionally, a diversified approach to investing -- combining the growth potential of equities with the higher income of bonds and the stability of money markets -- helps moderate your risk and enhance your potential return.
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The Unit holders of the Scheme can benefit by investing specific Rupee amounts periodically, for a continuous period. Mutual fund SIP allows the investors to invest a fixed amount of Rupees every month or quarter for purchasing additional units of the Scheme at NAV based prices.
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Here is an illustration using hypothetical figures indicating how the SIP can work for investors: Suppose an investor Plan on a quarterly basis. Would like to invest Rs.1, 000 under the Systematic Investment
1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000
8.20 7.40 6.10 5.40 6.00 8.20 9.25 10.00 11.25 13.40 14.40 -
121.95 135.14 163.93 185.19 166.67 121.95 108.11 100.00 88.89 74.63 69.44 1,435.90
Average unit cost Rs 12,000/1,435.9 = Rs 8.36 Average unit price 109.6/12 = Rs 9.13
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The investor liquidates his units and gets back Rs 21,395/Using the SIP strategy the investor can reduce his average cost per unit. The investor gets the advantage of getting more units when the market is turned down.
Types of Risks
All investments involve some form of risk. Even an insured bank account is subject to the possibility that inflation will rise faster than your earnings, leaving you with less real purchasing power than when you started (Rs. 1000 gets you less than it got your father when he was your age). Consider these common types of risk and evaluate them against potential rewards when you select an investment.
Market Risk
At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. When this happens, the stock prices of both an outstanding, highly profitable company and a fledgling corporation may be affected. This change in price is due to "market risk".
Inflation Risk
Sometimes referred to as "loss of purchasing power." Whenever inflation sprints forward faster than the earnings on your investment, you run the risk that you'll actually be able to buy less, not more. Inflation risk also occurs when prices rise faster than your returns.
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Credit Risk
In short, 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, or repay your principal when the investment matures? Effect of loss of key professionals and inability to adapt An industries' key asset is often the personnel who run the business i.e. intellectual properties of the key employees of the respective companies. Given the everchanging complexion of few industries and the high obsolescence levels, availability of qualified, trained and motivated personnel is very critical for the success of industries in few sectors. It is, therefore, necessary to attract key personnel and also to retain them to meet the changing environment and challenges the sector offers. 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.
Exchange Risk
A number of companies generate revenues in foreign currencies and may have investments or expenses also denominated in foreign currencies. Changes in exchange rates may, therefore, have a positive or negative impact on companies which in turn would have an effect on the investment of the fund.
Investment Risk
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The sect oral fund schemes, investments will be predominantly in equities of select companies in the particular sectors. Accordingly, the NAV of the schemes are linked to the equity performance of such companies and may be more volatile than a more diversified portfolio of equities.
Year Mar-65 Mar-87 Mar-93 Jan-03 Feb-03 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08
Rs. In crores 25 4564 47000 121805 87190 79464 139616 149554 231862 326388 505152
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WHAT IS NAV?
Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets dividend by the number of units outstanding. Buying and selling into funds is done on the basis of NAV- related prices NAV is calculated as follows: NAV = (Market value of the funds investments + Receivables + Accrued Income Liabilities Accrued Expenses) / Number of outstanding units.
The most important trend in the mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the decline of the companies floated by nationalized banks and smaller private sector players. The highlight of recent times has been the massive outflows faced by the Big Daddy of Indian mutual fund industry, UTI. Though this has not pared down the enormous size of the fund, at least the trend is to their discomfiture. Many nationalized banks got into the mutual fund business in the early nineties and got off to a good start due to the stock market boom prevailing then. These banks did not really understand the mutual fund business and they just viewed it as another
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kind of banking activity. Few hired specialized staff and generally chose to transfer staff from the parent organizations. The performance of most of the schemes floated by these funds was not good.
Some schemes had offered guaranteed returns and their parent organizations had to bail out these AMCs by paying large amounts of money as the difference between the guaranteed and actual returns. The service levels were also very bad. Most of these AMCs have not been able to retain staff, float new schemes etc. and it is doubtful whether, barring a few exceptions, they have serious plans of continuing the activity in a major way. Today the Mutual Fund industry has 34 players with some 400 odd products that cater to various segments of investors depending upon their risk appetite. The entry of private players has improved service standards and brought in more choice for the investors. Today, the Assets under Management in the industry have crossed Rs. 326388 crores. There was stagnation in this industry due to the fall in equity markets. But the current revival of the markets and fall in the interest rates is inducing people to invest more into equities. The performance of debt schemes has enabled the funds to control the outflow of investments. If we look at the profile of the Mutual Fund industry as a whole, around 15% is equity investments and 85% are spread over debt, G-Secs & money market instruments.
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M U T J I P V u s b
t u
n re
l P i c r i vS w F
a e t c e t oS
i o t hr e I f i n o g d r n e i a ih g n o
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1.
A.
Bank Sponsored
B.
Others
BOB Asset Management Company Limited Can bank Investment Management Services Limited UTI Asset Management Company Private Limited.
2.
Institutions
Jeevan Bima Sahayog Asset Management Company Limited
3.
Benchmark Asset Management Company Private Limited. Cholamandalam Asset Management Co. Ltd. Credit Capital Asset Management Co. Ltd. Escorts Asset Management Ltd. J.M. Financial Asset Management Private Ltd. Kodak Mahindra Asset Management Ltd. Reliance Capital Asset Management Co. Ltd. Sahara Asset Management Co. Private Ltd.
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In February 1986, the company made an initial public offering of Ordinary Shares on the London Stock Exchange Since that time; Templeton has improved and expanded both its investment management and its distribution capabilities. In addition to domestic retail fund distribution, private accounts are solicited from pension funds and institutions worldwide. Templeton is known for its global investment efforts headed Jeff Everett, chief investment officer of Templeton Global Equity Group, Gary Motyl, chief investment officer of Templeton Institutional Global Equities, as well as its emerging markets endeavors led by Dr. J. Mark Mobius, president of Templeton Asset Management Ltd.
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Offers more than 200 investment solutions under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust and Darby names globally. 3.2 Franklin Templeton India Franklin Templeton's association with India dates back to more than a decade as an investor. As part of the group's major thrust on investing in markets around the world, the India office was set up in 1996 as Templeton Asset Management India Pvt. Limited. It flagged off the mutual fund business with the launch of Templeton India Growth Fund in September 1996, and since then the business has grown at a steady pace.
A long-term commitment
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Since starting its operations in India, Franklin Templeton has invested a considerable amount of time, effort and resources towards investor and distributor education, the belief being - to be successful in the long term, the fundamentals need to be corrected, at whatever cost! This has resulted in various advertising campaigns aimed at educating investors, participation in seminars and distributor training programs. Franklin Templeton has played a pivotal role in steering the industry to its current stage, and as long term players, we continue to strive to achieve the objective of 'making mutual funds an investment of choice' for both individual and institutional investors.
In July 2002, Franklin Templeton India acquired Pioneer ITI, another leading fund house in India to create an organization with rich investment experience over market cycles, one of the most comprehensive product portfolios, footprint across the country and an in-house shareholder servicing function. The huge synergies that existed in the two organizations have helped the business grow at a rapid pace, catapulting the company to among the top two fund houses in India.
Companys Vision
To be the premier global investment management organization by offering high quality investment solutions, providing outstanding service and attracting, motivating and retaining talented individuals.
India
One of the largest Mutual Funds with over Rs.24,510 crores In assets. (as on April 08). 51 I.M.R.T
Over 21 lakh shareholder accounts. Healthy asset mix and great choice in equity and fixedincome
Investment management style Sizeable footprint in the country; presence in 33 cities. Manages 4 equity funds with a track record of over 10 years. Manages 3 of the 15 largest equity funds.
The principal objective of FRANKLIN TEMPLETON INVESTMENTS was to reduce the risk that is always present in the share market and also to give the investors a fair return than the banks. Today the investors do not have enough idea to invest in the share market nor do they have the time to ponder over the working principles of the share market. There are fund managers in every mutual fund company to analyze the market and then invest on behalf of the investors. So FRANKLIN TEMPLETON INVESTMENTS made the job of the investors easy by investing on behalf of them. Thus the returns are high and the work has also become very easy. It has provided a wide range of products, which are very specific according to the needs of the investors
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3.4 PRODUCTS
Franklin Templeton Investments has a wide variety of products to cater to the needs of different types of investors. The main products of Franklin Templeton Investments can be said to consist of the following: -
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Franklin India Index Fund (FIIF) Franklin India Flexi Cap Fund (FIFCF) Franklin India High Growth Companies Fund (FIHGCF)
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NFO
(New Fund Offer) Franklin Templeton Fixed Tenure Fund
Initial Offer Opens on: June 20 2008 Initial Offer Closes on: July 31, 2008 Date of Allotment: August, 8, 2008
Offer of Units at Rs. 10 per Unit (plus applicable load) for cash during the New Fund Offer Period and at NAV based prices upon re-opening.
Investment Objective
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A close end income fund that seeks to generate and reduce interest rate volatility, through a portfolio of fixed income securities with a maturity profile generally in line with the funds duration along with capital appreciation through equity exposure.
Types of Instruments
Debt securities and money market instrument# Equities and Equity Linked instrument
70% - 100%
0% - 30%
Payout Option
Benchmark Index
25% S&P CNX 500+65% crisil composite Bond fund index+10% crisil liquid fund index
Load Structure
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Entry: Nil;
Exit: On Redemption/Repurchase? Switch-out transactions before maturity of the fund as mentioned below.
Redemption period at the end of (from the Date of Allotment) Up to 18 months After 18 months but before 30 months After 30 months but before 42 months After 42 months but before 54 months After 54 months but before maturity
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On maturity.
3.5
Highlights Daily NAV Choice: Growth Plan and Dividend Plan (Reinvestment & Payout options)
Low entry amount of Rs.5000
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Easy liquidity: transactions are processed within 4 working days normally Convenience of Systematic Investment Plan : the ideal way to accumulate wealth over the long term
Minimum Application Amount Purchase: - Rs.5000/- and any amount in multiple of Rs.1/Additional Purchase: - Rs.1000/- and any amount in multiple of Rs.1/Repurchase - Rs.1000/- and any amount in multiple of Rs.1/Load Structure Entry: <Rs.5 Crs: 2.25%, =>Rs.5 Crs: Nil; Exit : <Rs.5 Crs: 0.5% (for redemption within 6 months of allotment), =>Rs.5 Crs:
1% (For redemption within 1 year of allotment Systematic investment plan: minimum amount Rs. 500 per month
Investment objective
An open ended growth scheme with an objective to provide medium to long term capital appreciation as a primary objective and income as a secondary objective.
Highlights Daily NAV Choice: Growth Plan and Dividend Plan (Reinvestment & Payout options)
Low entry amount of Rs.5000
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Easy liquidity: transactions are processed within 4 working days normally Convenience of Systematic Investment Plan: the ideal way to accumulate wealth over the long term
Minimum Application Amount Purchase: - Rs.5000/- and any amount in multiple of Rs.1/Additional Purchase: - Rs.1000/- and any amount in multiple of Rs.1/Repurchase - Rs.1000/- and any amount in multiple of Rs.1/-
Load Structure Entry: <Rs.5 Crs: 2.25%, =>Rs.5 Crs: Nil; Exit : <Rs.5 Crs: 0.5% (for redemption within 6 months of allotment), =>Rs.5 Crs:
1% (For redemption within 1 year of allotment Systematic investment plan: minimum amount Rs. 500 per month 12 month
Investment Objective
Franklin India High Growth Companies Fund (FIHGCF) is an open-end diversified equity fund that seeks to achieve capital appreciation through investment in Indian companies/sectors with high growth rate or potential.
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Types of Instruments
Equity and Equity Linked Instruments 70% - 100% Debt securities and Money Market Instruments
0% - 30%
Minimum Application Amount Purchase: - Rs.5000/- and any amount in multiple of Rs.1/Additional Purchase: - Rs.1000/- and any amount in multiple of Rs.1/Repurchase - Rs.1000/- and any amount in multiple of Rs.1/-
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Benchmark Index
S&P CNX 500
Load Structure Entry: <Rs.5 Crs: 2.25%, =>Rs.5 Crs: Nil; Exit : <Rs.5 Crs: 0.5% (for redemption within 6 months of allotment), =>Rs.5 Crs:
1% (For redemption within 1 year of allotment)
An open ended growth scheme with an objective to provide medium to long term capital appreciation as a primary objective and income as a secondary objective
Highlights Daily NAV Choice: Growth Plan and Dividend Plan (Reinvestment & Payout options)
Low entry amount of Rs.5000 Easy liquidity: transactions are processed within 4 working days normally Convenience of Systematic Investment Plan : the ideal way to accumulate wealth over the long term NRIs can invest on a fully repairable basis
Minimum Application Amount Purchase: - Rs.5000/- and any amount in multiple of Rs.1/Additional Purchase: - Rs.1000/- and any amount in multiple of Rs.1/Repurchase - Rs.1000/- and any amount in multiple of Rs.1/-
Load Structure Entry: <Rs.5 Crs: 2.25%, =>Rs.5 Crs: Nil; Exit : <Rs.5 Crs: 0.5% (for redemption within 6 months of allotment), =>Rs.5 Crs:
1% (For redemption within 1 year of allotment
Systematic investment plan: minimum amount Rs. 500 per month 12 month.
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VICE PRESIDENT
SENIOR MANAGER
MANAGEMENT TRAINEE
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1) Market share acquired by different AMC (on the basis of Branch manager opinion) Asset management company SBI RELIANCE FRANKLIN TEMPLETON KOTAK ICICI % 40 20 18 12 10
10 12 40
18 20
SBI
RELIANCE
FRANKLIN TEMPLETON
KOTAK
ICICI
Table No-1
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Analysis:
The above chart show that the SBI has the largest market share among the respective AMC.This is because customers have more faith in making investment in PSU Banks. Second market share leader is reliance which is the immediate competitor of Franklin Templeton.
% 40 30 20 10
10 20 40
30
Bank FD
Insurance
Mutual fund
Equity
Table No-2
Analysis:
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The above chart shows consumers prefer to invest in Bank FD rather than other capital instruments.
Customers opinion 3) No of people interviewed at different Banks Banks Bank of India Union Bank Of India United Bank Of India Central Bank of India Total No of people 5 25 5 10 45
10
5 25
Table No.3
Analysis:
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From the above data it can be said that maximum 52% of the people of Patna were from Union Bank was interviewed
4) No of people aware about FT mutual fund in different Banks Banks Bank of India Union Bank Of India United Bank Of India Central Bank of India Total No of people 5 25 5 10 45
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10
5 25
Table No.4
Analysis:
From the above data it can be said that maximum 25 out off 45 means around 52% of people of Bank of India are aware about FT mutual fund.
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No of people 10 20 5 5 5 45
5 5
10
5 20
<30
30-40
41-50
51-60
>60
Table-No.5
Analysis:From the above data it can be said that 20 people out off 45 were aware about FT and in which youngsters (<30) 5 out off 10, and older (51-60) 2 out off 5 were more aware about FT.
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No of people 20 15 10 45
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10 20
15
Government employees
Professionals
Table No.6
Analysis:
From the above data it can be said that no of people who interviewed, more people 20 out off 45 (around 45%) were Government employees and the least no of people were professionals.
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80
120
Pamphlet Distribution
Canopy set up
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8) Level of satisfaction relating to service provided by PSU Banks related to Franklin Templeton Mutual Fund.
No of people 20 15 10 45
10 20
15
1%to20%
21to61%
61&Above
From the above data we can see that many of the customers are not satisfied with the service provided by PSU Banks.
9) Preference given to FTI funds by consumers. Funds name Franklin India prima plus Franklin India flexi cap fund Franklin India high growth companies fund Franklin India prima fund Preferences 1 2 3 4
1 4 2
Franklin India prima plus Franklin India flexi cap fund Franklin India high growth com panies fund Franklin India prima fund
Table No-10
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Analysis:
The above chart shows that FIPP fund is is being no-1 fund respective to others funds provided by FTI
CHAPTER 5 CONCLUSION
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CONCLUSION
As we compare India with other countries we find that in service sector the share of banking sector is more than life insurance and mutual funds, where as in other country life insurance come first than mutual fund and the Banking sector.
As banking sector has the large customer base it is good to sale the mutual fund product through Banks. They have the large customer base, which could be useful for selling the FT mutual fund products.
The mutual fund industry in India has also increased in the recent years. The performance of Franklin Templeton mutual fund is good. Franklin Templeton awarded as the 10 best funds in India by Economy times.
PSU Banks has large customer base, which can be used to sell the FT product and also be useful to satisfy the customer as the customer is getting all the products under one roof.
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Mutual funds fetches fair returns over a longer period of time Sectoralequity funds are more risky to invest than equity diversified funds as its allocation is restricted only to one sector. 1) Mutual Fund is one option available for the investors to invest. 2) Mutual Funds are subject to market risk. 3) The evaluation of the mutual funds can be done by standard deviation, Sharpe ratio, beta ratio, alpha ratio, r-squared ratio. 4) Every Mutual fund has an objective and so the selection of the option of mutual fund is different for different for different investors baser on their risk appetite and liquidity requirement.
There are some ground rules for the common man who wants to enter this world of investments and start investing in mutual funds. They are: 1) Start Early:
The sooner you invest, the more time will grow. If you delay, you will almost certainly have to invest much to achieve a similar result.e.g. If you start investing Rs.5000 a month on your 40th birthday, in 20years time you would have put aside Rs.12 lakhs. If that investment grew by an average of 7% a year, it would be worth Rs.25, 52,994 when you reach 60.
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If you started investing ten years earlier, your Rs.5000 each month would add up to Rs.18 lakh over 30 years. Assuming the same average annual growth of 7%, you would have Rs. 58, 82,545 on your 60th birthday- more than double the amount you would have received if youd started ten years later! The bottom line- your investments gain most from compounded interest when you have time on your side.
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Returns on risk-free cash investment may sound respectable, but when you subtract current inflation rate you may not be impressed. For significant long-term growth you need to make your money work a little harder. For e.g.: If you have Rs. 10,000 in a saving account earning 3% interest each year, in 20 year time, your savings would be worth Rs. 18,061. Thats return of just over 80%. However, of inflation is about 7%, Rs. 18,061 would only be worth Rs. 4,668 in todays term.
7) Invest regularly:
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Investing regularly can be a great way to build up a significant lump sum. You will also benefit from what is known as rupee cost averaging. This means that, if you are investing in a mutual fund, over the years will pay the average price for units, if the market goes up, the units you already own will increase in value. If it goes down, your next payment will buy more units.
A portfolio that is the right for you at one point in your life may not be quite so suitable a few years later. Your investments need to adapt to changes in your circumstances, such as getting married, having children or starting a business. Its also a good idea to check that each of the funds in your portfolio is living up to your expectations.
Regarding customers:
People are not much aware about the mutual fund. They dont have idea about the investment pattern in mutual funds or any other securities.
They have more faith over LIC, UTI, Post Office, and Banks rather than towards mutual fund or any such types of securities.
They invest in insurance more comfortably than any other risk taking
securities.
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CHAPTER 7 SUGGESTIONS
SUGGESTION
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These require the investor to investor to invest a fixed to sum periodically, thereby letting the investor save in a disciplined and the phased manner. The mode of the investment could be through direct debit to the investors salary or bank account. Such plans are also known as Systematic Investment Plan. Investors looking for rupee cost averaging will generally opt for that offer this facility.
A modified version of SIP is the Voluntary Accumulation Plan (VAP) that allows the investor flexibility with respect to the amount and frequency of investment. Note that both SIP and VAP are only two optional ways of investing in a disciplined manner, in open end funds. The difference is that in the SIP, the investor agrees as a contractual obligation to deep investing, whereas in case of the VAP, he is not obliged to keep investing but has to impose voluntary self discipline.
Model Portfolio: Following are the steps to create a model portfolio for the investors:
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Make personal contact with Branch manager so that they give more attention
Give time-to-time visit to the PSU Banks so that it gives additional impact on
To make people more aware about mutual fund and Franklin Templeton., give
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CHAPTER 8 APPENDIXES
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NAME -:
_ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _
ADDRESS: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ ____________________ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
CONTACT NO. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Q 2 where you invest your money? a) Banks b) Post-office c) Mutual funds d) Others
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Q3) what % of your income you used to invest? a) 10-20% b) 20-40% c) 40-50% d) 50% & above. Q4.) Have you ever invested in mutual fund? a) Yes b) No Q 5) what is your expectations of return on investment? a) Up to 10% b) 10-20% c) 20-30% d) 30-40% e) 40% above.
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Q 7) If you would have given complete freedom which kind of investment you will choose?
a) Higher risk & higher gain. b) No risk & small gain. c) Low risk & high gain. Q.8) Which AMC provides you better services and solution to your Complains? a) ICICI b) HDFC c) FTI d) Others
Q9) what kind of client do you have? a) Government Job b) Private Job c) Businessman d) Others
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Q.10) on advertisement front how many points you would like to give to FTI out of 10
BIBLIOGRAPHY
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