final project report of birla sun life mutual fund

A PROJECT REPORT

ON

“Perception and satisfaction level among investors investing in liquid funds or

others: A Comparative study”

AT

BIRLA SUN LIFE MUTUAL FUND (CITY CENTRE, GWALIOR)

Submitted to

Jiwaji University

Gwalior

For the partial fulfillment of the award of

Master of Business Administration

(2011-2013)

Submitted by

Uday Chauhan

PRESTIGE INSTITUTE OF MANAGEMENT

GWALIOR (M.P.)

1

DECLARATION

This is declare that the project Report entitled” Perception and satisfaction level among

investors Investing in liquid funds or others” has been accomplished by Uday Chauhan and

being submitted partial fulfillment of requirement for the award of the degree of “Master of

Business Administration” from Prestige Institute of Management, Gwalior affiliates to Jiwaji

University, Gwalior. This work has not been submitted by us anywhere else for the award of

any degree or diploma. All sources of information and help have been mentioned and

acknowledged.

Date: - 25/07/2012 Uday Chauhan

Place:-Gwalior M.B.A.

Roll-No-58(E)

2

CERTIFICATE

This is to certify that Uday Chauhan students of MBA 2ND semester, Prestige Institute of

Management have successfully completed her project report Entitled “Perception and

satisfaction level among investors investing in liquid funds or others “For the partial

fulfillment of requirement for the award of the degree of “Master of Business Administration.

She had made her report under my guidance and supervision with utmost sincerity & loyalty.

Ravidera Pathak

(Faculty Guide)

3

ACKNOWLEDGEMENT

We are extremely grateful and remain indebted to our guide Mr. Puneet Sharma (Branch

Manager of Birla Sun Life Mutual Fund) and Mr. Mohd. Nayyar for giving me opportunity

to work under his guidance on project report on “Perception and satisfaction level among

investors Investing in liquid funds or others”. I am grateful to him for giving me the valuable

time & suggestion in the execution of project work.

I also acknowledge & convey thanks to the BIRLA SUN LIFE MUTUAL FUND for their kind

and valuable support.

Uday Chauhan

M.B.A. 2ND SEM

4

TABLE OF CONTENT:

S.NO. TOPIC PAGE NO.

1 Company’s profile:

(i) History of the organization & objectives

(ii) Company’s vision

(iii) Company’s mission

(iv) Values

(v) Position

2 Personnel:

(i) recruitment

(ii) selection

(iii) training and development

(iv) welfare activities

3 Production/operations:

(i) products/services offered

(ii) layout of the facility

(iii) quality control

(iv) present & future of the company

5

4 Marketing:

(i) Areas of operation

(ii) Major competitors

(iii) Market share

(iv) Outlets in country

(v) Market strategy

5 Strengths of the organization

6 OTHERS:

a) Key personnel

b) Awards

c) About mutual funds

CHAPTER 1 : INTRODUCTION

CHAPTER 2 : METHODOLOGY

(a) Objectives

(b) Research methodology

(c) The tools: (i) For data analysis.

CHAPTER 3 : RESULTS

CHAPTER 4 : SUGGESTIONS AND IMPLICATION

6

CHAPTER 5 : CONCLUSION

ANNEXURE:

(i) Questionnaire

(ii) glossary

(iii) references

7

1) COMPANY’S PROFILE

HISTORY:

Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla

Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life

Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla Group's

experience in the Indian market and Sun Life's global experience.

Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading flagships

of Mutual Funds business managing assets of a large investor base. Our solutions offer a range of

investment options, including diversified and sector specific equity schemes, fund of fund

schemes, hybrid and monthly income funds, a wide range of debt and treasury products and

offshore funds.

Birla Sun Life Asset Management Company has one of the largest team of research analysts in

the industry, dedicated to tracking down the best companies to invest in. BSLAMC strives to

provide transparent, ethical and research-based investments and wealth management services.

HERITAGE:

The Aditya Birla Group: The Aditya Birla Group is one of India's largest business houses. Global in

vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for

its multiple stakeholders. The group operates in 26 countries – India, UK, Germany, Hungary, Brazil,

Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos,

Indonesia, Philippines, UAE, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia, Bahrain and Korea.

A US $29 billion corporation in the League of Fortune 500, the Aditya Birla Group is anchored by an

extraordinary work force of 130,000 employees, belonging to 40 different nationalities. Over 60 per cent

of its revenues flow from its operations across the world. The Aditya Birla Group is a dominant player in

all its areas of operations viz; Aluminum, Copper, Cement, Viscose Staple Fiber, Carbon Black, Viscose

Filament Yarn, Fertilizers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual

Funds, Software and Telecom. The Group has strategic joint ventures with global majors such as Sun Life

(Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO

sector with the acquisition of TransWorks, a leading ITES/BPO company.

8

Sun life financial: Sun Life Financial Inc is a leading international financial services

organization providing a diverse range of wealth accumulation and protection products and

services to individuals and corporate customers. Chartered in 1865, Sun Life Financial Inc and

its partners today have operations in key markets worldwide, including Canada, the United

States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and

Bermuda.

VISION:

To be the most trusted name in investment and wealth management, to be the preferred employer

in the industry and to be a catalyst for growth and excellence of the asset management business

in India.

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

VALUES:

Integrity

Commitment

Passion

Seamlessness

Speed

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POSITION: Today it is ranked at 5th position among the 42 asset management company

(AMC) in the country.

2) PERSONNEL

RECRUITMENT:

Recruitment is the processes of selection for prospective employees simulating them for apply

for job in the organization. In other words it is linking activity bearing to gather with jobs,

selection jobs. Recruitment makes it possible to acquire the number and type of people necessary

to ensure the continued operation of the organization.

“Recruitment is the process of searching for prospective employee and stimulating encouraging

them to apply for jobs in an organization”.

There are two sources of recruitment:

(1) Internal sources: It includes promotion, transfer and demotion.

(2) External sources: It includes advertisement, employment, on campus requirement,

employee recommendation

In Birla sun life mutual fund they are using internal as well as external sources. Their policies for

external sources is such that first they give advertisement in newspaper and they have also

contact with employment exchange through these source first of all collect application, separated

and then after appropriate candidates are called for the interview.

SELECTION:

After creating if application of required number of employees secured through different sources

of recruitment the selection process begins. The main purpose of selection process is it finds the

right man for each job. The efficiency and profitability of the concern depends mainly on proper

selection of the personnel.

10

Company select employees through commercial made of three numbers. One is the work manager,

second is of manager and the third is the head department in which company exists.

TRAINING AND DEVELEOPMENT PROCESS:

It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts,

rules, or changing of attitudes and behaviors to enhance the performance of employees.

The system model consists of five phases and should be repeated on a regular basis to make

further improvements. The training should achieve the purpose of helping employee to perform

their work to required standards. The steps involved in System Model of training are as follows:

1. Analyze and identify the training needs i.e. to analyze the department, job, employees

requirement, who needs training, what do they need to learn, estimating training cost, etc The

next step is to develop a performance measure on the basis of which actual performance would

Be evaluated.

2. Design and provide training to meet identified needs. This step requires developing

objectives of training, identifying

3. Develop- This phase requires listing the activities in the training program that will assist the

participants to learn, selecting delivery method, examining the training material, validating

information to be imparted to make sure it accomplishes all the goals & objectives.

4. Implementing is the hardest part of the system because one wrong step can lead to the failure

of whole training program.

5. Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent work

performance. Making necessary amendments to any of the previous stage in order to remedy or

improve failure practices.

WELFARE ACTIVITIES:

The Group actively involves itself in several community development initiatives – in particular

around its manufacturing location. The group also supports development activities in areas like

healthcare, education, sustainable livelihood, infrastructure and social causes. The group's

philanthropic activities are guided by Mrs. Rajashree Birla.[14]

11

http://en.wikipedia.org/w/index.php?title=Rajashree_Birla&action=edit&redlink=1

http://en.wikipedia.org/wiki/Aditya_Birla_Group#cite_note-13

It works in 3,700 villages, reaching out to 7 million people annually through the Aditya Birla

Centre for Community Initiatives and Rural Development. It runs 45 schools and 18 hospitals

3) PRODUCTION/OPERATIONS:

PRODUCTS/SERVICES OFFERED:

SERVICES:

Birla Sun Life offers extensive and thoughtfully devised financial services to its large base of

customers across the globe to help them manage their finance in the most effective way. We can

benefit a lot from its wide array of financial services in the areas of wealth management, mutual

funds and insurance plans.

The mutual fund products and services are provided by investment managers of the Birla Sun

Life Asset Management Company Ltd. (BSLAMC). The company has been formed by the joint

efforts of Aditya Birla group and the sun life financial services Inc. of Canada.

The wealth management services are exclusively handled by the Birla Sun Life Distribution

Company Limited (BSDL). This is the subsidiary company of Aditya Birla Nuvo Ltd.

The life insurance business is taken care of by the Birla Sun Life Insurance Company Limited

(BSLI). The tie-up between Aditya Birla Group and Canada-based Sun Life Financial Inc

resulted in the existence of this one of the topnotch insurance companies in India.

PRODUCTS:

Direct Equity

Mutual Funds

Structured Products

Portfolio Management System (PMS)

Alternate Asset Products

Loan Against Securities and Mutual Funds

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Real Estate

Life Insurance

Gold

SERVICES BY BIRLA SUN LIFE MUTUAL FUND:

1. Highly proactive services

2. Online Portfolio Access

3. Regular Portfolio Reviews

4. Financial planning

5. Research

PRODUCTS OF BIRLA SUN LIFE MUTUAL FUND:

Equity Schemes

o Diversified Fund

o Theme Based Fund

o Sectoral Fund

Debt Schemes

o Interval Income Funds

o Fixed Maturity Plan

o Fixed Term Funds

o Short Term Fund

o Long Term Fund

o Floating Fund

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o Gilt Fund

o Cash Fund

Hybrid Schemes

o Capital Protection Fund

o Balanced Fund

o Fund of Funds

o MIP

Products offered:

Scheme

CodeScheme Name NAV Date NAV (Rs.)

Subscription

Price

Redemption

Price

295DBirla Sun Life Small And Midcap Fund

– Dividend24/06/2012 11.57920 11.5792 11.4634

298DBirla Sun Life International Equity Fund

- Plan B – Dividend24/06/2012 9.28650 9.2865 9.1936

296DBirla Sun life Pure Value Fund –

Dividend24/06/2012 15.50490 15.5049 15.3499

202RDBsl Commodity Equities Fund-global

Precious Metals Plan-retail-dividend24/06/2012 12.89140 12.8914 12.5047

202RGBsl Commodity Equities Fund-global

Precious Metals Plan-retail-growth24/06/2012 12.89140 12.8914 12.5047

295GBirla Sun Life Small And Midcap Fund

– Growth24/06/2012 11.57920 11.5792 11.4634

231G Birla Sun Lifetax Plan – Growth 24/06/2012 13.40000 13.4 13.4

935G Birla Sun Life India Reforms Fund- 24/06/2012 9.74000 9.74 9.64

14

growth

02 Bsl Tax Relief 96 – Dividend 24/06/2012 75.32000 75.32 75.32


Agri Plan-retail-dividend24/06/2012 15.71320 15.7132 15.2418


Agri Plan-retail-growth24/06/2012 15.71320 15.7132 15.2418

297GBirla Sun Life International Equity

Fund-plan A –growth24/06/2012 9.63850 9.6385 9.6385

935DBirla Sun Life India Reforms Fund-

dividend24/06/2012 9.74000 9.74 9.64

02G Birla Sun Lifetaxrelief 96 - Growth 24/06/2012 10.68000 10.68 10.68

299GBirla Sun Life Special Situations Fund –

Growth24/06/2012 9.34310 9.3431 9.2497

299GBirla Sun Life Special Situations Fund

– Growth24/06/2012 9.34310 9.3431 9.2497

299DBirla Sun Life Special Situations Fund

– Dividend24/06/2012 9.34310 9.3431 9.2497

296GBirla Sun life Pure Value Fund –

Growth24/06/2012 16.54790 16.5479 16.3824


Multi Commodity Plan-retail-growth24/06/2012 13.24970 13.2497 12.8522


Multi Commodity Plan-retail-dividend24/06/2012 13.24970 13.2497 12.8522

298GBirla Sun Life International Equity

Fund -plan B-growth24/06/2012 9.28650 9.2865 9.1936

297D Birla Sun Life International Equity 24/06/2012 9.63850 9.6385 9.6385

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Fund-plan A –dividend

201DBirla Sun Life Advantage Fund –

Dividend24/06/2012 76.64000 76.64 76.26

201GBirla Sun Life Advantage Fund –

Growth24/06/2012 149.79000 149.79 149.04

261DBirla Sun Life Dividend Yield Plus –

Dividend24/06/2012 13.08000 13.08 12.95

261GBirla Sun Life Dividend Yield Plus –

Growth24/06/2012 83.96000 83.96 83.12

251DBirla Sun Life Midcap Fund -plan A-

Dividend24/06/2012 21.19000 21.19 20.98

251GBirla Sun Life Midcap Fund -plan A –

Growth24/06/2012 104.50000 104.5 103.46

291DBirla Sun Life India Generation Next

Fund – Dividend24/06/2012 14.04000 14.04 13.9

291GBirla Sun Life India Generation Next

Fund – Growth24/06/2012 24.89000 24.89 24.64

292DBirla Sun Life Top 100 Fund –

Dividend24/06/2012 13.83230 13.8323 13.7631

292G Birla Sun Life Top 100 Fund - Growth 24/06/2012 22.45730 22.4573 22.345

293DBirla Sun Life Infrastructure Fund -

Plan A –dividend24/06/2012 10.68000 10.68 10.57

293GBirla Sun Life Infrastructure Fund -

Plan A-growth24/06/2012 15.51000 15.51 15.35

221D Birla Sun Life Mnc – Dividend 24/06/2012 79.41000 79.41 78.62

221G Birla Sun Life Mnc – Growth 24/06/2012 210.86000 210.86 208.75

16

211DBirla Sun Life India Opportunities

Fund – Dividend24/06/2012 16.04000 16.04 15.96

211GBirla Sun Life India Opportunities

Fund – Growth24/06/2012 50.73000 50.73 50

241D Birla Sun Life Index Fund - Dividend 24/06/2012 20.86770 20.8677 20.7634

241G Birla Sun Life Index Fund - Growth 24/06/2012 53.98360 53.9836 53.7137

231D Birla Sun Life Tax Plan - Dividend 24/06/2012 44.16000 44.16 44.16

281DBirla Sun Life Freedom Fund –

Dividend24/06/2012 15.13000 15.13 14.98

281GBirla Sun Life Freedom Fund –

Growth24/06/2012 32.14000 32.14 31.82

271D Birla Tax plan 98 31/03/2010 207.78000 0 207.78

A Birla Sun Life 95 Fund - Dividend 24/06/2012 105.53000 105.53 104.47

AG Birla Sun Life 95 Fund – Growth 24/06/2012 308.73000 308.73 305.64

21Birla Sun Life Basic Industries Fund –

Dividend24/06/2012 24.91000 24.91 24.66

23Birla Sun Life Basic Industries Fund -

Dividend Trigger29/06/2011 10.86000 10.86 10.75

22Birla Sun Life Basic Industries Fund –

Growth24/06/2012 94.45000 94.45 93.51

11Birla Sun Life Buy India Fund –

Dividend24/06/2012 21.55000 21.55 21.44

12Birla Sun Life Buy India Fund –

Growth24/06/2012 40.84000 40.84 40.64

17

Birla Sun Life Equity Fund - Growth 24/06/2012 246.81000 246.81 244.34

205RDBirla Sun Life Enhanced Arbitrage Fund

-retail Plan –dividend24/06/2012 10.78910 10.7891 10.7082

205IDBirla Sun Life Enhanced Arbitrage Fund

-institutional Plan –dividend16/08/2011 10.16280 10.1628 10.0866

205RGBirla Sun Life Enhanced Arbitrage Fund

-retail Plan –growth24/06/2012 11.04800 11.048 10.9651

52 Birla Sun Life Equity Fund - Dividend 24/06/2012 62.17000 62.17 61.55

91Birla Sun Life Frontline Equity Fund -

Plan A – Dividend24/06/2012 20.68000 20.68 20.47

92Birla Sun Life Frontline Equity Fund -

Plan A – Growth24/06/2012 86.03000 86.03 85.17

15Birla Sun Life New Millennium Fund –

Dividend24/06/2012 12.38000 12.38 12.26

16Birla Sun Life New Millennium Fund –

Growth24/06/2012 18.96000 18.96 18.77

294DBirla Sun Life Long Term Advantage

Fund – Dividend24/06/2012 12.72000 12.72 12.72

294GBirla Sun Life Long Term Advantage

Fund – Growth24/06/2012 13.77000 13.77 13.77

292RDBirla Sun Life Top 100 Fund - Dividend

Reinvest24/06/2012 13.83230 13.8323 13.7631

251HD Bsl Midcap Fund - Plan - B - Dividend 11/02/2012 12.51000 12.51 12.38

18

281RDBirla Sun Life Freedom Fund - Dividend

Reinvest24/06/2012 15.13000 15.13 14.98

299RDBsl Special Situations Fund - Dividend

Reinvest24/06/2012 9.34310 9.3431 9.2497

91DBsl Frontline Equity Fund - Plan B –

Dividend11/02/2012 12.50000 12.5 12.38

293RDBirla Sun Life Infrastructure Fund -plan

A - Dividend Reinvest24/06/2012 10.68000 10.68 10.57

21DBirla Sun Life Basic Industries Fund -

Dividend Reinvest24/06/2012 24.91000 24.91 24.66

202DDBsl Cef - Global Precious Metals Plan-

retail Dividend Reinvest24/06/2012 12.89140 12.8914 12.5047

204DDBsl Cef - Global Multi Commodity Plan-


ADBirla Sun Life '95 Fund - Dividend

Reinvest24/06/2012 105.53000 105.53 104.47

935DR Bsl India Reforms Fund -div Reinvest 24/06/2012 9.74000 9.74 9.64

52DBirla Sun Life Equity Fund - Dividend

Reinvest24/06/2012 62.17000 62.17 61.55

293FBirla Sun Life Infrastructure Fund-plan

B-dividend11/02/2012 10.97000 10.97 10.86

02DTax Relief '96 Fund-less - Dividend

Reinvest24/06/2012 75.32000 75.32 75.32

11DBirla Sun Life Buy India Fund - Dividend

Reinvest24/06/2012 21.55000 21.55 21.55

221RD Birla Sun Life Mnc Fund - Dividend 24/06/2012 79.41000 79.41 78.62

19

Reinvest

203DDBsl Cef - Global Agri Plan-retail


91BDBirla Sun Life Frontline Equity Fund -

plan B- Dividend Reinvest11/02/2012 12.50000 12.5 12.38

251DDBirla Sun Life Midcap Fund -plan B-


293EBirla Sun Life Infrastructure Fund-plan

B-growth11/02/2012 11.43000 11.43 11.32

297RDBsl International Equity-plan-a -dividend

Reinvest24/06/2012 9.63850 9.6385 9.6385

205DDBirla Sun Life Enhanced Arbitrage Fund

- Retail - Dividend Reinvest24/06/2012 10.78910 10.7891 10.7082

91GBsl Frontline Equity Fund - Plan B –

Growth11/02/2012 12.50000 12.5 12.38

202DDBsl Cef - Global Precious Metals Plan-


21DBirla Sun Life Basic Industries Fund -


293RDBirla Sun Life Infrastructure Fund -plan

A - Dividend Reinvest24/06/2012 10.68000 10.68 10.57

91DBirla Sun Life Frontline Equity Fund -

Plan B – Dividend11/02/2012 12.50000 12.5 12.38

299RDBirla Sun Life Special Situations Fund -


281RD Birla Sun Life Freedom Fund - Dividend 24/06/2012 15.13000 15.13 14.98

20

Reinvest

251HDBirla Sun Life Midcap Fund - Plan - B -

Dividend11/02/2012 12.51000 12.51 12.38

91DDBirla Sun Life Frontline Equity Fund -

plan A- Dividend Reinvest24/06/2012 20.68000 20.68 20.47

291RDBirla Sun Life India Gen next Fund -


15DBirla Sun Life New Millennium Fund -


251HG Bsl Midcap Fund - Plan B - Growth 11/02/2012 12.51000 12.51 12.38

298RDBsl International Equity Fund -plan-b -


OFFSHORE

Scheme

CodeScheme Name NAV Date

NAV

(US$)

Subscription

Price

Redemption

Price

IAF India Advantage (offshore) Fund 22/06/2012210.7700

0210.77 210.77

DEBT

Scheme


NAV

(Rs.)

Subscription

Price

Redemption

Price

21

352GBirla Sun Life Capital Protection Oriented

Fund (5 Year)-growth24/06/2012 12.52950 12.5295 12.5295

31APBirla Sun Life Income Fund Discipline

Advantage Plan24/06/2012 11.22990 11.2299 11.1738

913RDBirla Sun Life Fixed Term Retail Af

Dividend27/08/2012 10.00000 10 9.7

332DDBirla Sun life Savings Fund-institutional

Plan-daily Dividend24/06/2012 10.00680 10.0068 10.0068

353GBsl Capital Protection Oriented Fund

Series 1 – Growth24/06/2012 10.56960 10.5696 10.5696

303GBirla Sun Life Medium Term Plan - Retail

– Growth24/06/2012 11.56920 11.5692 11.5403

351DBirla Sun Life Capital Protection Oriented

Fund (3 Year)-dividend03/08/2012 10.00000 10 10

352DBirla Sun Life Capital Protection Oriented

Fund (5 Year)-dividend24/06/2012 12.52950 12.5295 12.5295

332MDBirla Sun life Savings Fund-institutional

Plan -monthly Dividend11/02/2012 10.30990 10.3099 10.3099

75IDBirla Sun Life Govt.securities Short Term

Instl-dividend24/06/2012 10.00000 10 10

83FDBirla Sun Life Short Term Fund -

Fortnightly-dividend24/06/2012 10.38280 10.3828 10.3568

912IG Bsl Ftp Institutional Series Ba - Growth 13/08/2010 11.12010 11.1201 10.8977

341IDBirla Sun Life Short Term Opportunities

Fund Instl Dividend Plan24/06/2012 10.35650 10.3565 10.3306

303QD Birla Sun Life Medium Term Plan - Retail 11/02/2012 10.19910 10.1991 10.1736

22

- Quarterly Dividend

911IG Bsl Ftp Instl Series Az – Growth 28/07/2010 11.12150 0 10.8991

331WDBirla Sun life Savings Fund-retail- Weekly

Dividend24/06/2012 10.01760 10.0176 10.0176

304QDBirla Sun Life Medium Term Plan -

Institutional - Quarterly Dividend11/02/2012 10.21730 10.2173 10.1918

341IGBirla Sun Life Short Term Opportunities

Institutional Growth24/06/2012 11.45330 11.4533 11.4247

303MDBirla Sun Life Medium Term Plan - Retail

- Monthly Dividend24/06/2012 10.29220 10.2922 10.2665

760RGBirla Sun Life Equity Linked Fmp-series

A-retail-growth22/06/2012 12.34180 12.3418 12.095

85DDBirla Sun Life Short Term Fund Instl Daily

Dividend24/06/2012 10.00550 10.0055 9.9805

512DDBirla Sun life Floating Rate Fund-long

Term Plan-daily Dividend11/02/2012 10.00500 10.005 9.98

913IDBirla Sun Life Fixed Term Instl Af

Dividend27/08/2011 10.00000 10 9.7

912RD Bsl Ftp Retail Series Ba - Dividend 13/08/2010 10.00000 10 9.8

304WDBirla Sun Life Medium Term Plan -

institutional - Weekly Dividend24/06/2012 10.04310 10.0431 10.018

304QDBirla Sun Life Medium Term Plan -

Institutional - Quarterly Dividend11/02/2012 10.21730 10.2173 10.1918

75IDDBirla Sun Life Govt.securities Short Term

Instl-daily Dividend06/11/2010 10.00000 10 10

23

301APBirla Sun Life Income Plus Discipline

Advantage Plan24/06/2012 11.22390 11.2239 11.1958

911ID Bsl Ftp Instl Series Az – Dividend 28/07/2010 10.00000 0 9.8

912ID Bsl Ftp Institutional Series Ba - Dividend 13/08/2010 10.00000 10 9.8

303MDBirla Sun Life Medium Term Plan - Retail

- Monthly Dividend24/06/2012 10.29220 10.2922 10.2665

760RGBirla Sun Life Equity Linked Fmp-series

A-retail-growth22/06/2012 12.34180 12.3418 12.095

85DDBirla Sun Life Short Term Fund Instl Daily

Dividend24/06/2012 10.00550 10.0055 9.9805

331MDBirla Sun life Savings Fund-retail -monthly

Dividend11/02/2012 10.28480 10.2848 10.2848

75IWDBirla Sun Life Govt.securities Short Term

Instl-weekly Dividend28/08/2010 10.00000 10 10

914RG Birla Sun Life Ftp-retail-series Bb-growth 08/09/2010 11.11150 11.1115 10.8893

911RD Ftp Retail Series Az – Dividend 28/07/2010 10.00000 0 9.8

304GBirla Sun Life Medium Term Plan -

Institutional – Growth24/06/2012 11.22780 11.2278 11.1997

914IG Birla Sun Life Ftp-instl-series Bb-growth 08/09/2010 11.15880 11.1588 10.9356

332WDBirla Sun life Savings Fund-institutional

Plan-weekly Dividend24/06/2012 10.01860 10.0186 10.0186

512DDBirla Sun life Floating Rate Fund-long

Term Plan-daily Dividend11/02/2012 10.00500 10.005 9.98

913IDBirla Sun Life Fixed Term Instl Af

Dividend27/08/2011 10.00000 10 9.7

24

912RD Bsl Ftp Retail Series Ba - Dividend 13/08/2010 10.00000 10 9.8

304WDBirla Sun Life Medium Term Plan -

institutional - Weekly Dividend24/06/2012 10.04310 10.0431 10.018

331DDBirla Sun Life Savings Fund-retail Daily

Dividend24/06/2012 10.00680 10.0068 10.0068

321MDBirla Sun Life Dynamic Bond Fund - Retail

Plan Monthly Dividend24/06/2012 10.58530 10.5853 10.5324

761IDBirla Sun Life Equity Linked Fmp-series

B-instl-dividend04/09/2009 0 0 0

304FDBirla Sun Life Medium Term Plan -

Institutional - Fortnightly Dividend24/06/2012 10.22900 10.229 10.2034

75DDBirla Sun Life Govt Securities Short Term

Retail Daily Dividend24/06/2012 10.00310 10.0031 10.0031

913IG Birla Sun Life Fixed Term Instl Af Growth 27/08/2011 12.33150 12.3315 11.9616

304MDBirla Sun Life Medium Term Plan -

Institutional - Monthly Dividend24/06/2012 10.24890 10.2489 10.2233

914RG Birla Sun Life Ftp-retail-series Bb-growth 08/09/2010 11.11150 11.1115 10.8893

83DDBirla Sun Life Short Term Fund -retail Plan

-daily Dividend24/06/2010 10.00550 10.0055 9.9805

351GBirla Sun Life Capital Protection Oriented

Fund (3 Year)-growth03/08/2012 11.70580 11.7058 11.7058

911RG Bsl Ftp Retail Series Az-growth 28/07/2010 11.06350 0 10.8422

301QDBirla Sun Life Income Plus - Quarterly

Dividend24/06/2012 11.92600 11.926 11.8962

301G Birla Sun Life Income Plus - Growth 24/06/2012 44.50290 44.5029 44.3916

25

311MD Birla Sun Life Mip – Dividend 24/06/2012 11.29460 11.2946 11.2664

311MP Birla Sun Life Mip – Payment 24/06/2012 26.70100 26.701 26.6342

311G Birla Sun Life Mip – Growth 24/06/2012 26.70100 26.701 26.6342

312MD Birla Sun Life Mip Saving 5 - Dividend 24/06/2012 11.26850 11.2685 11.1558

312MP Birla Sun Life Mip Saving 5 - Payment 24/06/2012 17.80750 17.8075 17.6294

312G Birla Sun Life Mip Saving 5 - Growth 24/06/2012 17.80750 17.8075 17.6294

313MD Birla Sun Life Mip Wealth 25 - Dividend 24/06/2012 11.26370 11.2637 11.1511

313MP Birla Sun Life Mip Wealth 25 - Payment 24/06/2012 17.99200 17.992 17.8121

313G Birla Sun Life Mip Wealth 25 - Growth 24/06/2012 17.99200 17.992 17.8121

401QDBirla Sun Life Gilt Plus - Liquid -

Quarterly Dividend24/06/2012 10.42090 10.4209 10.4209

401ADBirla Sun Life Gilt Plus - Liquid - Annual

Dividend24/06/2012 10.29820 10.2982 10.2982

401G Birla Sun Life Gilt Plus - Liquid - Growth 24/06/2012 22.74780 22.7478 22.7478

403QDBirla Sun Life Gilt Plus - Pf Plan -


403ADBirla Sun Life Gilt Plus - Pf Plan - Annual

Dividend11/02/2012 18.48120 18.4812 18.4812

402AG Birla Sun Life Gilt Plus - Pf Plan - Growth 24/06/2012 25.27430 25.2743 25.0216

404QDBirla Sun Life Gilt Plus - Regular Plan -

quarterly Dividend24/06/2012 12.11710 12.1171 12.1171

404ADBirla Sun Life Gilt Plus - Regular Plan -

Annual Dividend11/02/2012 23.75520 23.7552 23.7552

404G Birla Sun Life Gilt Plus - Regular Plan – 24/06/2012 32.34760 32.3476 32.3476

26

Growth

512MDBirla Sun Life Floating Rate Fund - Long

Term Plan – Dividend11/02/2012 10.58760 10.5876 10.5611

512GBirla Sun Life Floating Rate Fund - Long

Term Plan – Growth24/06/2012 17.17220 17.1722 17.1293

331FDBirla Sun life Savings Fund-retail

Dividend- Fortnightly11/02/2012 11.33760 11.3376 11.3376

331G Birla Sun Life Savings Fund-retail Growth 24/06/2012 18.55260 18.5526 18.5526

332FDBirla Sun Life Savings Fund - Institutional

Dividend11/02/2012 10.90920 10.9092 10.9092

332GBirla Sun Life Savings Fund - Institutional

Growth24/06/2012 19.04100 19.041 19.041

321QDBirla Sun Life Dynamic Bond Fund - Retail


321GBirla Sun Life Dynamic Bond Fund - Retail

Growth24/06/2012 16.67870 16.6787 16.5953

341QDBirla Sun Life Short Term Opportunities -

quarterly Dividend24/06/2012 10.51060 10.5106 10.4843

341GBirla Sun Life Short Term Opportunities-

growth24/06/2012 15.64310 15.6431 15.604

402IGBirla Sun Life Gilt Plus - Pf Plan - Growth-

Instand-gain24/06/2012 25.27430 25.2743 25.0216

77Birla Sun Life Govt. Securities Long Term

Dividend24/06/2012 11.36880 11.3688 11.3688

78Birla Sun Life Govt. Securities Long Term

Growth24/06/2012 28.70160 28.7016 28.7016

27

75Birla Sun Life Govt Securities Short Term

Retail Dividend11/02/2012 10.20170 10.2017 10.2017

76Birla Sun Life Govt. Securities Short Term

Retail Growth24/06/2012 19.36990 19.3699 19.3699

31Birla Sun Life Income Fund - Half Yearly

Dividend11/02/2012 11.75350 11.7535 11.6947

32 Birla Sun Life Income Fund - Growth 24/06/2012 36.57580 36.5758 36.3929

33Birla Sun Life Income Fund - 54ea

Dividend11/02/2012 10.64570 10.6457 10.5925

34 Birla Sun Life Income Fund - 54ea Growth 11/02/2012 35.29860 35.2986 35.1221

35Birla Sun Life Income Fund - 54eb

Dividend11/02/2012 15.57080 15.5708 15.4929

36 Birla Sun Life Income Fund - 54eb Growth 11/02/2012 35.07630 35.0763 34.9009

37Birla Sun Life Income Fund - Quarterly

Dividend24/06/2012 11.33700 11.337 11.2803

61Birla Sun Life Monthly Income - Monthly

Dividend24/06/2012 11.28770 11.2877 11.1748

62Birla Sun Life Monthly Income - Quarterly

Dividend24/06/2012 11.91260 11.9126 11.7935

63 Birla Sun Life Monthly Income - Growth 24/06/2012 36.97670 36.9767 36.6069

83Birla Sun Life Short Term Fund - Monthly

Dividend11/02/2012 10.80680 10.8068 10.7798

84Birla Sun Life Ultra Short Term Fund –

Growth24/06/2012 18.05750 18.0575 18.0124

512WD Birla Floating Rate Fund-long Term Plan- 24/06/2012 10.00780 10.0078 9.9828

28

weekly Dividend

31DBirla Sun Life Income Fund - Half Yearly


953GBirla Sun Life Short Term Fmp - Series 6

Growth28/04/2012 10.22920 10.2292 10.2292

403ABirla Sun Life Gilt Plus - Pf- Annual


957GBirla Sun Life Fixed Term Plan Series Cq

Growth24/06/2012 10.34300 10.343 10.343

331MBirla Sun Life Savings Fund-retail-monthly


953DBirla Sun Life Short Term Fmp - Series 6

Dividend28/04/2012 10.00000 10 10

934G Bsl Fixed Term Plan Series Cd - Growth 05/04/2012 10.66630 10.6663 10.6663

950GBirla Sun Life Fixed Term Plan - Series

Cm Growth24/06/2012 10.38690 10.3869 10.3869

966GBirla Sun Life Short Term Fmp Series 11

Growth08/06/2012 10.24710 10.2471 10.2471

968GBirla Sun Life Fixed Term Plan Series Cv

Growth24/06/2012 10.26250 10.2625 10.2625


Growth24/06/2012 10.27240 10.2724 10.2724


Growth24/06/2012 10.03940 10.0394 10.0394

970DBirla Sun Life Fixed Term Plan Series Cw

Dividend24/06/2012 10.26430 10.2643 10.2643

29

403QBirla Sun Life Gilt Plus - Pf- Quarterly


401QBsl Gilt Plus-liquid-quarterly Dividend

Reinvestment24/06/2012 10.42090 10.4209 10.4209

952DBirla Sun Life Fixed Term Plan - Series Cn

Dividend24/06/2012 10.36390 10.3639 10.3639

984G Bsl Short Term Fmp Series 18 Growth 24/06/2012 10.00430 10.0043 10.0043

341WDBirla Sun Life Short Term Opportunities

Fund-retail-weekly Dividend24/06/2012 10.01110 10.0111 9.9861

966DBirla Sun Life Short Term Fmp Series 11

Dividend08/06/2012 10.00000 10 10

33DBirla Sun Life Income Fund - 54ea


952GBirla Sun Life Fixed Term Plan - Series Cn

Growth24/06/2012 10.36390 10.3639 10.3639

936D Bsl Fixed Term Plan Series Ce - Dividend 24/06/2012 10.55100 10.551 10.551

512ID Bsl Floating Rate- Lt- Instl – Dd24/06/2012

10.00000 10 9.975

404QBirla Sun Life Gilt Plus - Regular -

Quarterly Dividend Reinvest24/06/2012 12.11710 12.1171 12.1171


Dividend24/06/2012 10.03940 10.0394 10.0394

401ABirla Sun Life Gilt Plus - Liquid - Annual


303QBsl Medium Term Plan - Retail - Quarterly


30

971DBirla Sun Life Fixed Term Plan Series Cx

Dividend24/06/2012 10.22630 10.2263 10.2263


Dividend15/06/2012 10.00000 10 10

312MBirla Sun Life Mip Ii - Savings 5 Plan -

Monthly Dividend Reinvest24/06/2012 11.26850 11.2685 11.1558

983D Bsl Short Term Fmp Series 17 Dividend 24/06/2012 10.03510 10.0351 10.0351

602DDBirla Sun Life Asset Allocation Fund -

Moderate Plan - Dividend Reinvest24/06/2012 28.11260 28.1126 28.1126

963GBsl Capital Protection Oriented Fund Series

5 – Growth24/06/2012 10.10620 10.1062 10.1062

954GBirla Sun Life Fixed Term Plan Series Co

Growth24/06/2012 10.36960 10.3696 10.3696

968GBirla Sun Life Fixed Term Plan Series Cv

Growth24/06/2012 10.26250 10.2625 10.2625


Growth24/06/2012 10.27240 10.2724 10.2724

948GBsl Capital Protection Oriented Fund -

Series 3-growth24/06/2012 10.56720 10.5672 10.5672


Growth21/04/2012 10.22710 10.2271 10.2271


Aggressive Plan - Dividend Reinvest24/06/2012 33.65690 33.6569 33.6569


Dividend21/04/2012 10.00000 10 10

75D Birla Sun Life Govt. Securities Short Term 11/02/2012 10.20170 10.2017 10.2017

31

- Retail - Dividend Reinvest

964GBirla Sun Life Fixed Term Plan Series Ct

Growth24/06/2012 10.30640 10.3064 10.3064

954DBirla Sun Life Fixed Term Plan Series Co

Dividend24/06/2012 10.12520 10.1252 10.1252

512MBirla Sun Life Floating Rate Fund - Retail -

Long Term - Monthly Dividend Reinvest11/02/2012 10.58760 10.5876 10.5611

932G Bsl Fixed Term Plan-series C B-growth 24/06/2012 10.97250 10.9725 10.9725

957DBirla Sun Life Fixed Term Plan Series Cq –

Dividend24/06/2012 10.34300 10.343 10.343

61DBirla Sun Life Monthly Income - Monthly


61DBirla Sun Life Monthly Income - Monthly


512IGBsl Floating Rate Fund Long Term

Institutional Plan Growth24/06/2012 11.81140 11.8114 11.7819

321QBirla Sun Life Dynamic Bond Fund - Retail

- Quarterly Dividend Reinvest24/06/2012 11.48620 11.4862 11.4288

958DBirla Sun Life Short Term Fmp Series 8 –

Dividend19/05/2012 10.00000 10 10

956GBirla Sun Life Fixed Term Plan Series Cp

Growth24/06/2012 10.35500 10.355 10.355


Growth19/05/2012 10.24550 10.2455 10.2455

321APBsl Dynamic Bond Fund Discipline

Advantage Plan Growth24/06/2012 11.53740 11.5374 11.4797

32

964DBirla Sun Life Fixed Term Plan Series Ct

Dividend24/06/2012 10.30640 10.3064 10.3064


Growth15/06/2012 10.24290 10.2429 10.2429


Dividend08/06/2012 10.00000 10 10


Aggressive Plan - Dividend Reinvest24/06/2012 33.65690 33.6569 33.6569


Dividend21/04/2012 10.00000 10 10

75DBirla Sun Life Govt. Securities Short Term

- Retail - Dividend Reinvest11/02/2012 10.20170 10.2017 10.2017


Series 3-growth24/06/2012 10.56720 10.5672 10.5672


Growth21/04/2012 10.22710 10.2271 10.2271

956DBirla Sun Life Fixed Term Plan Series Cp

Dividend24/06/2012 10.35500 10.355 10.355

37DBirla Sun Life Income Fund - Quarterly


968DBirla Sun Life Fixed Term Plan Series Cv

Dividend24/06/2012 10.26250 10.2625 10.2625

62DBirla Sun Life Monthly Income - Quarterly



Conservative Plan - Dividend Reinvest24/06/2012 20.87820 20.8782 20.8782

33

931G Bsl Fixed Term Plan-series C A-growth 08/06/2012 10.93220 10.9322 10.9322

954G Birla Sun Life Fixed Term Plan Co Grwth 24/06/2012 10.36960 10.3696 10.3696

959GBirla Sun Life Fixed Term Plan Series Cr

Growth24/06/2012 10.33270 10.3327 10.3327

970GBirla Sun Life Fixed Term Plan Series Cw

Growth24/06/2012 10.26430 10.2643 10.2643

971GBirla Sun Life Fixed Term Plan Series Cx

Growth24/06/2012 10.22630 10.2263 10.2263

301QBirla Sun Life Income Plus - Quarterly


965GBirla Sun Life Fixed Term Plan Series Cu

Growth24/06/2012 10.27230 10.2723 10.2723

354GBsl Capital Protection Oriented Fund Series

2 – Growth24/06/2012 10.14740 10.1474 10.1474

984D Bsl Short Term Fmp Series 18 Dividend 24/06/2012 10.00430 10.0043 10.0043

83DBirla Sun Life Short Term Fund - Retail

Monthly Dividend Reinvest11/02/2012 10.80680 10.8068 10.7798

977DBirla Sun Life Fixed Term Series Db

Dividend24/06/2012 10.10310 10.1031 10.1031


Dividend24/06/2012 10.11520 10.1152 10.1152

341IWBirla Sun Life Short Term Opportunities

Fund-instl-weekly Dividend24/06/2012 10.01110 10.0111 9.9861

961GBirla Sun Life Fixed Term Plan Series Cs

Growth24/06/2012 10.30220 10.3022 10.3022

983G Bsl Short Term Fmp Series 17 Growth 24/06/2012 10.03510 10.0351 10.0351

34

77DBirla Sun Life Govt. Securities Long Term


934G Bsl Fixed Term Plan Series Cd - Growth 05/04/2012 10.66630 10.6663 10.6663

341QBirla Sun Life Short Term Opportunities

Fund-retail Dividend Reinvest24/06/2012 10.51060 10.5106 10.4843

404ABirla Sun Life Gilt Plus - Regular - Annual


303FBsl Medium Term Plan -retail- Fortnightly


965DBirla Sun Life Fixed Term Plan Series Cu

Dividend24/06/2012 10.27230 10.2723 10.2723


Series 4-growth24/06/2012 10.36900 10.369 10.369

961DBirla Sun Life Fixed Term Plan Series Cs

Dividend24/06/2012 10.30220 10.3022 10.3022

311MBirla Sun Life Mip - Monthly Dividend

Reinvest24/06/2012 11.29460 11.2946 11.2664

CASH

Scheme


NAV

(Rs.)

Subscription

Price

Redemption

Price

513GBirla Sun Life Floating Rate Fund - Short

Term - Ip – Growth26/06/2012 13.27480 13.2748 13.2748

513DD Birla Sun Life Floating Rate Fund - Short 26/06/2012 10.00200 10.002 10.002

35

Term - Ip - Daily Dividend

513FDBirla Sun Life Floating Rate Fund - Short

Term - Ip - Fortnightly Dividend11/02/2012 10.00000 10 10

513WDBirla Sun Life Floating Rate Fund - Short

Term - Ip - Weekly Dividend26/06/2012 10.01260 10.0126 10.0126

501DDBirla Sun Life Cash Plus - Retail- Daily

Dividend26/06/2012 16.36940 16.3694 16.3694

501G Birla Sun Life Cash Plus - Retail Growth 26/06/2012 26.41360 26.4136 26.4136

502DDBirla Sun Life Cash Plus - Institutional Plan

- Daily Dividend26/06/2012 10.80230 10.8023 10.8023

502WDBirla Sun Life Cash Plus - Institutional Plan

- Weekly Dividend26/06/2012 10.81180 10.8118 10.8118

502FDBirla Sun Life Cash Plus - Institutional Plan

- Fortnightly Dividend11/02/2012 10.82100 10.821 10.821

502GBirla Sun Life Cash Plus - Institutional Plan

– Growth26/06/2012 26.91620 26.9162 26.9162

503DDBirla Sun Life Cash Plus - Institutional

Premium Plan - Daily Dividend26/06/2012 10.01950 10.0195 10.0195

503WDBirla Sun Life Cash Plus - Institutional

Premium Plan - Weekly Dividend26/06/2012 10.02720 10.0272 10.0272

503FDBirla Sun Life Cash Plus - Institutional

Premium Plan - Fortnightly Dividend11/02/2012 10.00000 10 10

503MDBirla Sun Life Cash Plus - Institutional

Premium Plan - Monthly Dividend11/02/2012 10.00000 10 10

503GBirla Sun Life Cash Plus - Institutional

Premium Plan – Growth26/06/2012 16.01920 16.0192 16.0192

36

504DDBirla Sun Life Cash Plus Sweep Plan –

Dividend07/05/2011 10.11750 10.1175 10.1175

511DDBirla Sun Life Floating Rate Fund - Short

Term Plan - Daily Dividend26/06/2012 10.00150 10.0015 10.0015

511GBirla Sun Life Floating Rate Fund - Short

Term Plan – Growth26/06/2012 16.47310 16.4731 16.4731

511WDBirla Sun Life Floating Rate Fund - Short

Term Plan - Weekly Dividend26/06/2012 10.37970 10.3797 10.3797

44Birla Sun Life Cash Manager - Weekly

Dividend24/06/2012 10.00950 10.0095 10.0095

43 Birla Sun Life Cash Manager - Growth 24/06/2012 24.31630 24.3163 24.3163

47Birla Sun Life Cash Manager - Institutional

Daily Dividend24/06/2012 10.00300 10.003 10.003


Weekly Dividend24/06/2012 10.00990 10.0099 10.0099


Plan – Growth24/06/2012 16.76430 16.7643 16.7643

977GBirla Sun Life Fixed Term Series Db

Growth24/06/2012 10.10310 10.1031 10.1031

FMP

Scheme


NAV

(Rs.)

Subscription

Price

Redemption

Price

854DBirla Fixed Term Plan-quarterly Series 18-

dividend13/09/2008 10.00000 0 9.95

846D Birla Ftp - Quarterly Series 14-dividend 06/08/2008 10.00000 0 9.95

37

851DBirla Fixed Term Plan-24 Months-dividend-

retail10/06/2010 10.00000 0 9.6

846G Birla Ftp-quarterly-series 14-growth 06/08/2008 10.25800 0 10.2067

824D Birla Fixed Term Plan - Series P - Dividend 08/05/2009 11.18670 0 10.7392

851GBirla Fixed Term Plan-24 Months-growth-

retail10/06/2010 12.06600 0 11.5834

847D Birla Ftp-quarterly Series 15-dividend 16/08/2008 10.00000 0 9.95

853DBirla Fixed Term Plan-quarterly Series 17-

dividend06/09/2008 10.00000 0 9.95

893RG Birla Ftp Retail Series Aj - Growth 28/04/2010 11.11700 0 10.8947

872DBirla Sun Life Fixed Term Plan-series Ac

Institutional-dividend10/10/2009 10.00000 0 9.6

856GBirla Fixed Term Plan-retail-series X

Growth07/07/2009 10.91790 0 10.5904

847G Birla Ftp -quarterly-series 15-growth 16/08/2008 10.24780 0 10.1966

854GBirla Fixed Term Plan-quarterly Series 18-

growth13/09/2008 10.22120 0 10.1701

906RD Birla Ftp Retail Series Au Dividend 14/05/2010 10.00000 10 9.8

906IG Birla Ftp Instl Series Au Growth 14/05/2010 10.94000 10.94 10.7212

906ID Birla Ftp Instl Series Au Dividend 14/05/2010 10.00000 10 9.8

910IG Birla Ftp Instl Series Ay Growth 03/07/2010 11.02690 0 10.8064

853GBirla Fixed Term Plan-quarterly Series 17-

growth06/09/2010 10.21990 0 10.1688

890G Birla Sun Life Quarterly Interval Fund- 06/01/2011 11.92750 11.9275 11.8082

38

series 5- Growth

890DBirla Sun Life Quarterly Interval Fund-

series 5-dividend06/01/2011 10.00000 10 9.9

877GBirla Sun Life Interval Income Fund-retail-

monthly Plan-series I-growth16/11/2010 11.45240 11.4524 11.3951

857GBirla Sun Life Fixed Term Plan-instl-series

X Dividend07/07/2009 10.96060 0 10.6318

857DBirla Sun Life Fixed Term Plan-instl- Series

X Dividend07/07/2009 10.00000 0 9.7

906RG Birla Ftp Retail Series Au Growth 14/05/2010 10.92120 10.9212 10.7028

893IG Birla Ftp Instl Series Aj – Growth 28/04/2011 11.15270 0 10.9296

AAF

Scheme


NAV

(Rs.)

Subscription

Price

Redemption

Price

881GBirla Sun Life Fixed Term Plan -retail-

series Ae- Growth20/04/2010 11.24210 0 10.7924

882DBirla Sun Life Fixed Term Plan -instl-series

Ae- Dividend20/04/2010 10.00000 0 9.6

882G Birla Sun Life Fixed Term Plan -instl-series 20/04/2010 11.29080 0 10.8392

39

Ae- Growth

883RGBirla Sun Life Quarterly Interval Fund -

Series 1-growth02/06/2010 11.31200 11.312 11.1989

861GBirla Fixed Term Plan-retail-series Aa-

growth26/08/2009 10.89870 0 10.4628

862GBirla Sun Life Fixed Term Plan-instl-series

Aa-growth26/08/2010 10.94290 0 10.5052

501APBirla Sun Life Cash Plus-discipline

Advantage Fund26/06/2012 11.05340 11.0534 11.0534

83APBirla Sun Life Short Term Fund-discipline

Advantage Fund24/06/2012 11.21610 11.2161 11.1881

862DBirla Sun Life Fixed Term Plan-instl-series

Aa-dividend26/08/2009 10.00000 0 9.6

878GBirla Sun Life Interval Income Fund-

institutional-monthly Plan-series I-growth16/10/2010 11.42830 11.4283 11.3712

883RDBirla Sun Life Quarterly Interval Fund -

Series 1-dividend02/06/2010 10.00000 10 9.9

861DBirla Fixed Term Plan-retail-series Aa-

dividend26/08/2009 10.00000 0 9.6

884RDBirla Sun Life Quarterly Interval Fund -

Series 2-dividend27/11/2010 10.00000 10 9.9

40

884RGBirla Sun Life Quarterly Interval Fund -

Series 2 –growth27/11/2010 11.50310 11.5031 11.3881

601DBirla Sun Life Asset Allocation Fund -

Aggressive Plan – Dividend24/06/2012 33.65690 33.6569 33.6569

601GBirla Sun Life Asset Allocation Fund -

Aggressive Plan – Growth24/06/2012 33.65690 33.6569 33.6569


Conservative Plan – Dividend24/06/2012 20.87820 20.8782 20.8782


Conservative Plan – Growth24/06/2012 20.87820 20.8782 20.8782


Moderate Plan – Dividend24/06/2012 28.11260 28.1126 28.1126


Moderate Plan – Growth24/06/2012 28.11260 28.1126 28.1126

331APBirla Sun Life Savings Fund - Discipline

Advantage Plan24/06/2012 11.10690 11.1069 11.1069

41

LAYOUT OF THE FACILITY:

Mobile Investment facility: Birla Sun Life Mutual Fund (BSLMF) is offering a facility

to its customers for management of their portfolio investments on the move via their

mobile phones. BSLMF has launched a new platform called “Mobile Investment

Manager” in partnership with MCHEK India Payment Systems Pvt. Ltd (mChek). This

service will be available to existing Birla Sun Life customers and can be used for

accessing portfolio information, making additional purchases, registering for SIPs and

also for switches and redemptions.

Online investment facility: Birla Sun life Mutual Fund introduces the online investment

facility. This would help to invest your funds through “Click of a Mouse”. The Step by

Step demo for investing online is available to guide to invest.

Dividend sweep facility: Birla Sun Life Mutual Fund has announced the introduction of

Dividend Sweep Facility. Under the facility, one can opt for switching the dividend

earned under Open ended Debt Schemes into any other Open Ended Equity or Balanced

Scheme of the fund.

Systematic investment plan facility: SIP allows investors to invest small amounts of

money in schemes of Birla Sun Life Mutual Fund on a regular basis

Systematic transfer plan facility: STP allows the Investors to invest by transfer of a

fixed amount from any of the following schemes to any open ended scheme of Birla Sun

42

Life Mutual Fund. Since the amount is fixed per month the investor gets the benefit of

Rupee Cost Averaging.

Systematic withdrawal plan facility: A Systematic Withdrawal Plan (SWP) is a

financial plan that allows an investor to withdraw money from an existing mutual fund

portfolio at predetermined intervals

Electronic clearance system facility: Our Electronic Clearance System (ECS) is one of

our many initiatives of making financial planning a simple and hassle-free undertaking

for you.

QUALITY CONTROL:

BSLAMC follows a long term approach to investment, which is based on identifying companies

that have good credit-worthiness & are fundamentally strong. It places emphasis on quality of

management & risk control. This is done through extensive analysis that includes factory visits

& field research. It has one of the largest team of research analysis in the industry.

PRESENT AND FUTURE OF THE COMPANY:

1) Birla sun life asset management company ltd joint venture with Aditya Birla group

currently they are in 6th position in a financial industry in India.

2) Birla Sun Life Mutual Fund follows a conservative long-term approach to investment.

Recently it crossed AUM of Rs. 10,000 cores.100% growths in the last 6 years.

3) Numbers of foreign AMC’s are in the queue to enter the Indian markets like Fidelity

Investments, US based, with over US$1trillionassets under management worldwide.

4) Our saving rate is over 23%, highest in the world. Only canalizing these savings in

mutual funds sector is required.

5) In future they want to introduce more number of open ended and close ended Schemes to

become competitive in the market and to increase there market Share.

6) December 2007, Indian mutual fund industry reached Rs 1, 50,537

7) It is estimated that by 2010 March-end, the total assets of all Scheduled commercial

banks should be Rs 40, 90,000 cores.

43

8) The annual composite rate of growth is expected 13.4% during the Rest of the decade.

9) In the last 5 years we have seen annual growth rate of 9%.

10) According to the current growth rate, by year 2010, mutual fund Assets will be

double.10. End of 2007- Mutual fund industry had assets under management of

Rs.1, 50,537 cores.

4) MARKETING

AREA OF OPERATION:

BSLAMC is working in mutual funds means their main area of operation is mutual fund.

A mutual fund is professionally managed type of collective investment scheme that pools money

from many investors typically in investment securities.

MAJOR COMPETITORS:

1. Reliance mutual fund

2. ICICI mutual fund

3. UTI mutual fund

4. HDFC mutual fund

MARKET SHARE:

Birla sun life asset Management Company having 10.33% market

Share.

44

Market share of asset management companies

OUTLETS IN COUNTRY: Today BSLAMC is present in 152 locations, including 32

branches. They have branches in major cities like Mumbai, Nagpur, Calcutta, etc.

COMPANY STRATEGY:

1. Pricing strategy:-In the mutual fund pricing strategy is very simple & easy to understand. In

the case of mutual fund there are two funds are available open ended & close ended. The cost

of this two type of fund is fixed open ended –Rs.5000 & close ended fund –Rs.3000. in the

case of BSLAMC they have fixed Pricing strategies. They provide installment facility also.

2. Marketing strategy:-BSLAMC is one of the reputed companies in asset management only

because of there marketing strategy they reached at this level. There marketing strategy is

very simple o understand. BSLAMC is joint venture with ADITY BIRLA GROUP. They

used this tie up links for there marketing strategy.

3. Promotion strategy;- They give there advertisements on T.V. ,hording &banner. They use their links

for this purpose.

STRENGTHS OF THE ORGANISATION:

Excellent is next to nothing……and here at Birla everybody tries their best to offer excellent

services through its offerings maintaining the Birla culture which includes:

45

a) Controlled and low cost service culture: Birla is there to serve its client at the

minimum possible cost. It controls its cost by various cost cutting techniques and

maximization of avoidable cost.

b) Large volume processing capability: Being the largest financial service provider in the

country, it has the unique distinction of operating its activities on a large scale which

benefits all the parties cordially.

c) Adherence to strict time schedule: Birla knows that time is money and tries it best to

finish the task with in the stipulated time schedule.

d) Expertise in coordinating multi-location responses: Birla has got a wide network and

hence one can find its branches at most of the places in India. Thus it enjoys its presence

everywhere and coordinates among itself in solving the queries and in responding to any

situation.

e) Expertise in managing independent entities such as banks, post- office etc: The

work culture of Birla and the ethics followed inside Birla makes its workforce

compatible with everybody.

f) Pooling of group resources: Birla group consist of eight subsidiaries, so it can easily

pool up its resources for accomplishment of its goals, whenever needed. The groups can

help each other whenever there are peaks and lows, and even in the case when they have

huge targets just we saw a few year back, Tata group pooling its resources to acquire

corus.

OTHERS:

KEY PERSONNELS:

46

SENIOR MANANGEMNET:

Mr. A Bal Subramanian, Chief Executive Officer – BSLAMC, Mr. Navin Tewari, Head-Sales

and Customer Engagement – BSLAMC, Mr. Sarb Preet Singh, Head Institutional Sales –

BSLAMC, Mr. Ashok Suvarna, COO – BSLAMC, Mr. Manoj Kumar Gandhi, Head Finance and

Strategy – BSLAMC, Ms. Rama Vasantharajan - Head-Compliance & Risk Management –

BSLAMC, Mr. Rajesh Srivastava - Head Human Resources, BSLAMC Mr. Rahul Parikh, Head

Business Development – BSLAMC, Mr. Rahul Parikh, Head Business Development –

BSLAMC, Ms. Molly Kapoor, Head Customer Service – BSLAMC Mr. Bhavdeep Bhatt, Head

Products – BSLAMC Mr. Rajiv Joshi, Head - Legal, Compliance and Secretarial – BSLAMC,

Mr. Thrivikram Iyer, Head Risk Management – BSLAMC Mr. Maneesh Dangi - Head - Fixed

Income, Mr. Mahesh Patil - Head Equity - Domestic Assets Mr. Satyabrata Mohanty - Head -

Mixed Assets, Mr. Ajay Argal - Head Equity – Offshore

BOARD OF DIRECTORS:

Birla Sun Life Trustee Company Pvt Ltd:

Mr. Prafull Anubhai (Independent Director) 72 years / B.Com, B.Sc. (Econ.) from London

School of Economics

Mr. Gurcharan Das (Independent Director) 66 years / Graduated with honors from Harvard

University and later attended Harvard Business School (AMP)

Dr. V.Arunachalam (Independent Director) 66 years / Graduated with honors from Harvard

University and later attended Harvard Business School (AMP)

Mr. Suresh Talwar (Associate Director) 72 years / B.Com., LL.B., Solicitor & Advocate

Mr. B.N.Puranmalka (Associate Director) 74 years / F.C.A., F.C.S., LL.B

Birla Sun Life Asset Management Company Ltd:

Mr. Kumar Mangalam Birla (Associate Director & Chairman) 43 years / C.A., M.B.A. (London

Business School)

47

Mr. Ajay Srinivasan (Associate Director) 46 years / B.A. Economics (Hons.), PGDM, IIM -

Ahmedabad

Mr. Ashok Goenka (Independent Director) 79 years / B.A. (Hons), M.B.A.(Wharton School,

University Of Pennsylvania, USA)

Mr. S.S. Raman (Independent Director) 73 years / B.Com (Hons.), C.A., Post Graduate in

Business Management

Mr. Donald Stewart (Associate Director) 63 years / FIA, FCIA

Mr. N.N.Jambusaria (Independent Director 76 years / M. Com, Fellow of the Institute of

Actuaries, London. F.A.S.I. (Fellow of the Actuarial Society of India)

Mr. N.C.Singhal (Independent Director) 73 years / Postgraduate in Economics, Statistics and

Administration.

He has received professional education from institutes like IIM (Ahmedabad, Calcutta), IIT

Kanpur, and ISI Calcutta

Mr. Dikran Ohannessian (Associate Director) 57 yrs / Fellow of the Society of Actuaries and the

Canadian Institute of Actuaries.

Mr. Sandeep Asthana (Associate Director) 43 years / B. Tech from IIT Mumbai, MBA from IIM

Lucknow.

Mr. Ravindra Chandra Bhargava (Independent Director) 76 years / Msc, MA (Dev. Economics)

Mr. R Vaidyanathan (Independent Director) 58 years / M. Stat, PhD in Finance

Mr. Pankaj Razdan (Associate Director) 42 years / B.Tech (Electronics), B.SC (Electronics)

AWARDS:

ICRA Mutual Fund Awards 2010 - 2011

BSL Government Security Fund - Long Term won 7 Staraward in the Open ended

Gilt category for its one year performance

48

http://mutualfund.birlasunlife.com/Products/RetailProducts/OtherSchemes/GovtSecurtiesFundLTP/tabid/466/Default.aspx

BSL Dynamic Bond Fund - Retail won 5 Star award in the Open ended Debt short

term category for its 3 year performance

BSL MNC Fund won two 5 star awards for its one year and three year performance

respectively in the Open ended diversified Equity defensive category

BSL Dividend Yield Plus won 5 star awards for its one year performance in the Open

ended diversified Equity aggresive category and another 5 star award for its three year

performance in the Open ended diversified Equity defensive category.

Outlook Money Awards 2010 - 2011

Best Debt Fund House

Best Fund House - Runner's up

MUTUAL FUNDS:

WHAT ARE MUTUAL FUNDS?

A mutual fund is a managed group of owned securities of several corporations. These

corporations receive dividends on the shares that they hold and realize capital gains or losses on

their securities traded. Investors purchase shares in the mutual fund as if it was an individual

security.

After paying operating costs, the earnings (dividends, capital gains or losses) of the mutual fund

are distributed to the investors, in proportion to the amount of money invested. Investors hope

that a loss on one holding will be made up by a gain on another. Heeding the adage "Don't put all

your eggs in one basket" the holders of mutual fund shares are able collectively to gain the

advantage by diversifying their investments, which might be beyond their financial means

individually.

A mutual fund may be either an open-end or a closed-end fund. An open-end mutual fund does

not have a set number of shares; it may be considered as a fluid capital stock. The number of

49

http://www.davidcole.net/mutual_funds/

http://mutualfund.birlasunlife.com/Products/RetailProducts/Growmywealth/BSLDividendYieldPlus/tabid/81/Default.aspx

http://mutualfund.birlasunlife.com/Products/RetailProducts/OtherSchemes/MNCFund/tabid/461/Default.aspx

http://mutualfund.birlasunlife.com/Products/RetailProducts/AnAlternativetomyBankSavingsAccount/BSLDynamicBondFund/tabid/89/Default.aspx

shares changes as investors buys or sell their shares. Investors are able to buy and sell their

shares of the company at any time for a market price.

However the open-end market price is influenced greatly by the fund managers. On the other

hand, closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates

with the market. But with close-end funds, the fund manager has less influence because the price

of the underlining owned securities has greater influence.

FOUR PHASES OF MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust India, at the

initiative of the Government of India and Reserve Bank. The history of mutual funds in India can

be broadly divided into four distinct phases:

FIRST PHASE – 1964-87: Unit Trust of India (UTI) was established on 1963 by an Act of

Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and

administrative control of the reserve bank of India. In 1987 UTI was de-linked from the RBI and

the Industrial Development Bank of India (IDBI) took over the regulatory and administrative

control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of

1988 UTI had Rs.6, 700 Crores of assets under management.

SECOND PHASE – 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS): 1987 marked the

entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance

Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund

was the first non- UTI Mutual Fund established in June 1987 followed by the following. At the

end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores.

THIRD PHASE-1993-2003(ENTRY OF PRIVATE SECTOR FUNDS): With the entry of

private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the

Indian investors a wider choice of fund families. Also, 1993 was the year in which the first

Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be

registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton)

was the first private sector mutual fund registered in July 1993. As at the end of January 2003,

50

there were 33 mutual funds with total assets of Rs. 1, 21,805 cores. The Unit Trust of India with

Rs.44, 541 Crores of assets under management was way ahead of other mutual funds.

FOURTH PHASE-SINCE FEBRURARY 2003: In February 2003, following the repeal of the

Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified

Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 Crores as at

the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and

certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an

administrator and under the rules framed by Government of India and does not come under the

purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by

SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund

Regulations.

HISTORY OF MUTUAL FUNDS

History of Mutual Funds has evolved over the years and it is sure to appear as something very

interesting for all the investors of the world. In present world, mutual funds have become a main

form of investment because of its diversified and liquid features. Not only in the developed

world, but in the developing countries also different types of mutual funds are gaining popularity

very fast in a tremendous way. But, there was a time when the concept of Mutual Funds was not

present in the economy.

There is an ambiguity about the fact that when and where the Mutual Fund Concept was

introduced for the first time. According to some historians, the mutual funds were first

introduced in Netherlands in 1822. But according to some other belief, the idea of Mutual Fund

first came from a Dutch Merchant ling back in 1774.

In 1822, that idea was further developed. In 1822, the concept of Investment Diversification was

properly incorporated in the mutual funds. In fact, the Investment Diversification is the main

attraction of mutual funds as the small investors are also able to allocate their little Funds in a

diversified way to lower Risks.

51

After 1822 in Netherlands, the Mutual Funds Concept came in Switzerland in 1849 and

thereafter in Scotland in the 1880s. After being popular in Great Britain and France, Mutual fund

concept traveled to U.S.A in the 1890s. In 1920s and 1930s, the Mutual Fund popularity reached

a new high. There was record investment done in mutual funds. But, before 1920s, the mutual

funds were not like the modern day mutual funds.

The modern day mutual funds came into existence in 1924, in Boston. Massachusetts Investors

Trust introduced the Modern Mutual Funds and the funds were available from 1928. At present

this Massachusetts Investors Trust is known as MFS Investment Management Company. After

the glorious year of 1928, Mutual fund ideas expanded to different levels and different

regulations came for well functioning of the funds.

Still today, the funds are evolving and improving in order to offer people much wider choices

and better advantages for fulfillment of their various investment needs and financial objectives.

BRIEF DESCRIPTION OF MUTUAL FUNDS:

Mutual Fund is a mechanism for pooling the resources by issuing units to the investors and

investing in securities in accordance with objective as disclosed in the offer document.

Mutual funds are money-managing institutions set up to professionally invest the money pooled

in from the public. These schemes are managed by Asset Management Companies (AMC),

which are sponsored by different financial institutions or companies.

Each unit of these schemes reflects the share of investor in the respective fund and its

appreciation is judged by the Net Asset Value (NAV) of the scheme. The NAV is directly linked

to the bullish and bearish trends of the markets as the pooled money is invested either

inequity shares or in debentures or treasury bills. Indian Mutual Funds unveils this multi-

dimensional avenue, with its intricacies, in a fashionable manner as mutual funds up-hold ample

scope of generating decent returns by some thoughtful investment.

The flow chart below describes broadly the working of a mutual fund:

52

http://finance.indiamart.com/markets/mutual_funds/




ORGANISATION OF MUTUAL FUND:

There are many entities involved and the diagram below illustrates the organizational set up of a

mutual fund:

TYPES OF MUTUAL FUNDS:

53

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk

tolerance and return expectations etc. The table below gives an overview into the existing types

of schemes in the Industry.

1. By Structure

a. Open - Ended Schemes

b. Close - Ended Schemes

c. Interval Schemes

2. By Investment Objective

a. Growth Schemes

b. Income Schemes

c. Balanced Schemes

d. Money Market Schemes

3. Other Schemes

a. Tax Saving Schemes

b. Special Schemes

i. Index Schemes

ii. Sector Specific Schemes

Advantages & Disadvantages of Mutual Fund

The advantages of investing in a Mutual Fund are:

1. Professional Management

2. Diversification

3. Convenient Administration

4. Return Potential

5. Low Costs

6. Liquidity

7. Transparency

8. Flexibility

9. Choice of schemes

54

10. Tax benefits

11. Well regulated

The disadvantages of investing in a Mutual Fund are:

1. Cost control not in the hands of an investor

2. Mutual Funds Have Hidden Fees

3. Mutual Funds Have High Sales Charges

4. Mutual Funds and Poor Trade Execution

5. All Mutual Funds Have High Capital Gains Distributions.

6. Mutual Funds Lack Liquidity

INTRODUCTION OF TOPIC:

LIQUID FUND

There are two categories of funds that have caught the imagination of investors these days --

liquid and liquid-plus funds. Though, at present, most of the money in these funds comes from

institutional investors, the retail investor is slowly beginning to realize their benefits. These

funds can prove to be useful for the retail investor to manage their short-term surpluses.

Liquid funds are used primarily as an alternative to short-term fix deposits. Liquid funds invest

with minimal risk (like money market funds). Most funds have a lock-in period of a maximum of

three days to protect against procedural (primarily banking) glitches, and offer redemption

proceeds within 24 hours. The minimum investment size in a liquid fund varies from Rs. 25,000

to Rs 1 lakh.

Liquid funds invest in short-term debt instruments with maturities of less than one year.

Therefore, they invest in money market instruments, short-term corporate deposits and treasury.

The maturity of instruments held is between three and six months. A liquid fund provides good

55

liquidity, low interest rate risk and the prevailing yield in the market. Liquid funds have the

restriction that they can only have 10 per cent or less mark-to-market component, indicating a

lower interest rate risk.

Liquid funds have an exit load if the investor redeems before the lock-in period. But in most

cases, the lock-in period is quite low - varying from 7 to 10 days. Liquid funds score over short

term fix deposits. Banks give a fixed rate in the range 5%-5.5% p.a. for a term of 15-30 days.

Returns from deposits are taxable depending on the tax bracket of the investor, which

considerably pulls down the actual return. Dividends from liquid funds are tax-free in the hands

of investor, which is why they are more attractive than deposits. The sole disadvantage liquid

funds are that investors cannot take the advantage of higher returns being offered by long-term

instruments.

In the last one year, liquid funds have returned between 7.7 per cent and 8.85 per cent. Liquid-

plus funds, on the other hand, have slightly higher returns between 8.4 and 11.29 per cent.

Obviously, that makes them a better choice as against money earning a dismal 3-3.5 per cent in

your savings account. Let us look at these two options in detail.

1. LIQUID FUNDS: These funds invest in short-term debt instruments with maturities of less

than one year. A liquid fund would normally provide good liquidity, low interest rate risk and the

prevailing yield in the market. Therefore, they invest in money market instruments, short-term

corporate deposits and treasury. The maturity of instruments held is between three and six

months. Liquid funds have the restriction that they can only have 10 per cent or less mark-to-

market component, indicating a lower interest rate risk.

As far as costs go, they have an exit load, if the investor redeems before the lock-in period. But

these periods are rather low -- in most cases, around 7-10 days. The only disadvantage liquid

funds has is that investors cannot take the advantage of higher returns being offered by long-term

instruments. But the biggest benefit is that though the returns are lower, the risk is nominal,

making it an ideal instrument for parking short-term funds.

2. LIQUID-PLUS FUNDS: These funds were launched to cater to those with a stomach for

slightly higher risk, and as a result higher returns. A typical liquid-plus fund will have similar

56

investments like a liquid fund, but around 30 per cent of the corpus is invested in instruments

with longer maturity period.

They do not have any restriction on the mark-to-market component (liquid funds can have only

up to 10 per cent) and there is no lock-in period for the liquid-plus funds category. Also, liquid-

plus funds are a hit as they are more tax-efficient. The dividend distribution tax works out to

14.16 per cent as against 28.33 per cent for liquid funds.

As it can been seen, the positioning of these two categories is quite different. That is, they

provide an option between short-term liquid funds and other long-term debt funds. They are,

hence, attractive for those who want a slightly higher return without going all the way with only

higher tenure investment options.

Though the performance of these two funds is similar, in a rising interest rate regime, long-term

maturity papers are observed to be riskier and their value reduces. This leads to loss of returns of

liquid-plus funds.

In the recent times, tough market conditions and the fear in investors have hit the assets under

management of both these funds. Especially, corporate investors have been cautious. This has led

to a negative impact of the expense ratio on the returns.

As the tax treatment of liquid-plus funds is better, they would still outperform, considering the

net-of-tax parameter. This is why retail investors can consider this as a more sensible option,

albeit at higher risk, to invest their money in the short term

DIFFERENCE BETWEEN LIQUID FUND AND LIQUID PLUS FUND

The main difference between pure liquid and liquid plus funds is the tenure of the

securities held.

The instruments held by liquid plus funds have a longer tenure than liquid funds.

In terms of tax implications, there is a dividend distribution tax of 28.33% on liquid

funds, whereas 14.16% is levied on liquid plus funds (in case of individual investors).

57

ADVANTAGES OF LIQUID FUND

A lucrative means of parking money for the short term and earning reasonable returns is

to invest in liquid funds.

Liquid funds have no entry and exit loads in most cases.

Liquidation is easy.

Investors can liquidate at an NAV (net asset value) which they consider to be lucrative, as

against a normal mutual fund where an NAV just has a notional value.

WHY TO INVEST IN A LIQUID FUND?

The main reason for investing in Liquid funds should be Liquidity factor; these funds are most

liquid and least volatile... So if you need to have liquidity in your portfolio, always invest some

money in Liquid funds, any extra money lying in your Saving Account above your 1 month

requirement should be in Liquid fund.

TAX EFFICIENCY:

Dividends from liquid funds are tax-free in the hands of investor, which is why they are more

attractive than deposits. Returns from deposits are taxable depending on the tax bracket of the

investor, which considerably pulls down the actual return (unless of course the interest earned

does not exceed the 80 L limit).

Let's take an example of two investors `A' and `B' who invest in fixed deposit and Liquid fund

respectively. Both are in the highest tax bracket and invest for a tenure of 30 days.`A' makes a

deposit of Rs 500,000 in HDFC Bank at the rate of 5% p.a. for a tenure of 30 days and `B'

invests in `Birla sun life (I) Liquid fund' for the same period and amount.

A's investment

HDFC Bank Amount (Rs)

Investment 500,000

58

*Return (y) 2,000

Tax paid (30.6%) (z) 612

Actual return (y-z) 1,388

Return on Investment (30 days) 0.28%

(Return is considered @ of 5% p.a. for 30 days)

B's investment

BSL Liquid Fund (Dividend) Amount (Rs)

Investment 500,000

*Return (y) 2,000

Tax paid (30.6%) (z) -

Actual return (y-z) 2,000

Return on Investment (30 days) 0.40%

(*Return is considered on the dividend declared in last 30 days)

The above example shows that B gains more than A when tax is taken into consideration.

LIQUIDITY:

Deposits marginally score over liquid funds as far as liquidity is concerned. In bank deposits the

investor's bank account is credited as soon as his FDR (fixed deposit receipt) is surrendered to

the bank. However, in case of liquid funds the investor has to give a redemption request to the

fund within the cut off time to receive that days NAV and the Cheque is issued to him on the

next working day. However, some funds give the facility of crediting the investor's bank account

e.g. BSL gives this facility to the HDFC bank account holders.

Factoring in all these factors, liquid funds do emerge as a better option as compared to fixed

deposits. However, while investing money in these funds investors need to carefully evaluate the

fund's performance. There is a possibility that liquid funds may not deliver in terms of expected

59

returns owing to market factors. Therefore, if you have Rs 100 to invest, you should probably

split the money between a liquid fund and a fixed deposit.

A recent study conducted by Crisil Fund Services has pronounced liquid funds, an attractive

alternative to retail investors for parking funds lying idle in their savings bank accounts. Reason:

they offer higher post-tax returns, are liquid and provide a reasonable degree of safety in terms of

the principal invested.

Over the last 5 years, liquid funds (Crisil Fund Rank 1 index for liquid funds) have given an

annualized post-tax return of 5.78% as compared to 2.5% given by a savings bank account.

Despite this disparity in returns, a majority of Indians continue to park a large amount of funds in

savings bank accounts. As of March 31, 2010, money in such accounts in scheduled commercial

banks stood at Rs 11.36 trillion.

According to Mukesh Agarwal, senior director, Crisil Research: "Beyond returns, liquid funds

also have advantages in terms of liquidity, safety and portability. They can be redeemed within

24 hours and have no exit load. Further, liquid funds invest in securities with a maximum

maturity of 91 days, which cuts down the credit risk. Most liquid fund schemes are also highly

rated (P1+f), signifying very strong protection against losses from credit defaults."

Within liquid funds the dividend option is more tax-efficient. This option would be more suitable

for investors who fall within the 20 and 30% tax brackets, as it attracts a lower dividend

distribution tax of 12.5%. Post tax deductions, liquid funds yield better returns as compared to

savings accounts and fixed deposits, wherein the interest earned would be taxed based on an

individual's tax slab

Tarun Bhatia, director, capital markets, Crisil Research, added: "It is important to note that liquid

funds are not totally risk-free and an investor must carry out basic checks before investing.

Factors such as the fund house and the scheme vintage, overall assets under management (AUM)

of the mutual fund, consistent performance over a longer period and comparison of the scheme

with appropriate benchmarks can be looked at for selecting the right fund

BIRLA SUN LIFE LIQUID FUNDS:

60

Asset Date: 25-Jun-2012

Scheme Name 1m % 3m % 1y % 3y %Fund Size (Rs.

Cr)

Birla Sun Life Cash Plus - Inst Premium (Div-D)

9.0 9.2 7.9 6.9 6,801

Birla Sun Life Cash Plus - Inst Premium (G)

8.6 8.8 7.8 6.7 6,801

Birla Sun Life Cash Plus - Inst (Div-D)

8.0 8.6 7.7 6.4 6,801

Birla Sun Life Cash Plus - Inst Premium (Div-W)

6.5 8.1 7.6 6.7 6,801

Birla Sun Life Cash Plus - Inst (G)

8.2 8.6 7.4 6.3 6,801

Birla Sun Life Cash Plus - Retail (Div-D)

8.3 8.7 7.3 5.9 6,801

Birla Sun Life Cash Plus - Inst (Div-W)

6.3 7.9 7.3 6.3 6,801

Birla Sun Life Cash Plus - Retail (G)

8.1 8.4 7.2 6.0 6,801

Birla Sun Life Cash Plus (Discpln Advats Plan)

7.8 8.0 6.8 NA 6,801

TOP LIQUID FUNDS:

Ranked on the basis of their performance (%) as on Jul 22, 2011. Click on 'Time Period' to rank funds on a particular period of your choice

PerformanceRANK SCHEME NAME DATE 1month 3month 6month 1Yr 6Yrs

1 Escorts Liquid Plan - Growth Jul 22, 2011

0.82 2.52 5.04 9.34 7.89

2 Sahara Liquid Fund - VP - Growth Jul 24, 2011

0.74 2.22 4.54 8.06 7.25

3 SBI Magnum Insta Cash Fund - Liquid Floater - Growth

Jul 24, 2011

0.71 2.17 4.33 8.02 6.63

61

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=SB049


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=FI022

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=EM016

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Discpln-Advats-Plan/82895043

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Discpln-Advats-Plan/82895043

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Retail-Growth/528836

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Retail-Growth/528836

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Div-W/15530669

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Div-W/15530669

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Retail-Div-D/10848915

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Retail-Div-D/10848915

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Growth/10841138

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Growth/10841138

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Premium-Div-W/15732871

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Premium-Div-W/15732871

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Div-D/536613

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Div-D/536613

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Premium-Growth/14745192

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Premium-Growth/14745192

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Premium-Div-D/14752969

http://www.indiainfoline.com/Mutualfunds/Birla-Sun-Life-Cash-Plus-Inst-Premium-Div-D/14752969

4 Sahara Liquid Fund - Fixed Pricing Option - Growth

Jul 24, 2011

0.74 2.20 4.50 8.01 7.16

5 IDFC Liquid Fund - Plan A - Growth Jul 24, 2011

0.75 2.16 4.57 7.94 6.16

6 JM High Liquidity - Growth Jul 24, 2011

0.73 2.18 4.28 7.90 6.58

7 Kotak Floater - ST - Growth Jul 24, 2011

0.72 2.17 4.36 7.87 6.37

8 Quantum Liquid Fund - Growth Jul 24, 2011

0.69 2.15 4.24 7.84 6.64

9 IDBI Liquid Fund - Growth Jul 24, 2011

0.72 2.15 4.23 7.78 N/A

10 Baroda Pioneer Liquid Fund - Growth

Jul 24, 2011

0.73 2.17 4.25 7.78 6.16

11 Reliance Liquidity Fund - Growth Jul 24, 2011

0.72 2.16 4.29 7.75 6.71

12 IDFC Liquid Fund - Plan D - Growth Jul 24, 2011

0.73 2.11 4.47 7.75 N/A

13 PRINCIPAL Cash Mgmt Fund - Growth

Jul 24, 2011

0.72 2.15 4.25 7.71 6.51

14 HDFC Cash Mgmt Fund - Savings Plan - Growth

Jul 24, 2011

0.72 2.14 4.26 7.68 6.63

15 SBI Magnum Insta Cash - Cash Plan Jul 24, 2011

0.71 2.11 4.15 7.66 6.34

16 Daiwa Liquid Fund - Ret - Growth Jul 24, 2011

0.73 2.17 4.24 7.66 N/A

17 Axis Liquid Fund - Ret - Growth Jul 24, 2011

0.69 2.08 4.13 7.58 N/A

18 Taurus Liquid Fund - Growth Jul 24, 2011

0.70 1.94 4.04 7.58 5.74

19 BNP Paribas Overnight Fund - Growth

Jul 24, 2011

0.71 2.11 4.17 7.58 6.65

20 DSP BlackRock Liquidity Fund - Regular Plan - Growth

Jul 24, 2011

0.70 2.11 4.14 7.56 5.97

21 Tata Money Market Fund - Growth Jul 24, 2011

0.69 2.10 4.22 7.55 6.39

22 JPMorgan India Liquid Fund - Ret - Growth

Jul 24, 2011

0.71 2.09 4.08 7.55 N/A

23 L&T Liquid Fund - Reg - Growth Jul 24, 2011

0.70 2.09 4.12 7.53 6.22

24 HDFC Liquid Fund - Growth Jul 24, 0.71 2.13 4.20 7.52 6.41

62

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=HD005

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=CH019

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=JP022

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=JP022

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=TA081

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=DS005

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=DS005

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AB018

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AB018

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=TR009

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AX019

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=SH001


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=ZI015


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=ID097


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AZ487

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=RC172

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=BB006

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=BB006

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=II006

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=QU003

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=KM057

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=JM008




2011 25 Reliance Liquid Fund - Cash Plan -

Growth Jul 24, 2011

0.72 2.17 4.31 7.49 5.10

26 ING Liquid Fund - Growth Jul 24, 2011

0.69 2.04 4.04 7.45 6.23

27 LIC Nomura MF Liquid Fund - Growth

Jul 24, 2011

0.65 1.97 4.01 7.40 6.73

28 Reliance Liquid Fund - TP - Retail - Growth

Jul 24, 2011

0.69 2.09 4.17 7.35 6.40

29 Templeton India TMA - Growth Jul 24, 2011

0.70 2.05 4.04 7.34 6.21

30 Tata Liquid Fund - RIP - Growth Jul 24, 2011

0.69 2.08 4.08 7.33 6.19

31 AIG India Liquid Fund - Ret - Growth Jul 24, 2011

0.67 2.04 4.05 7.31 6.11

32 IDFC Cash Fund - Plan A - Growth Jul 24, 2011

0.69 2.06 4.05 7.29 6.14

33 DWS Insta Cash Plus Fund - Growth Jul 24, 2011

0.67 2.02 4.04 7.27 6.39

34 IDFC Liquid Fund - Plan F - Growth Jul 24, 2011

0.68 1.96 4.16 7.26 N/A

35 Religare Liquid Fund - Regular - Growth

Jul 24, 2011

0.66 1.97 3.89 7.25 6.17

36 UTI Money Market - Ret - Growth Jul 24, 2011

0.68 2.02 4.01 7.25 6.40

37 Peerless Liquid Fund - Ret - Growth Jul 24, 2011

0.60 1.77 3.80 7.22 N/A

38 Fidelity Cash Fund - Retail - Growth Jul 24, 2011

0.69 2.02 3.98 7.21 5.84

39 Birla Sun Life Cash Plus - Retail - Growth

Jul 24, 2011

0.68 2.08 4.05 7.17 5.96

40 UTI Liquid Fund - Cash Plan - Growth

Jul 24, 2011

0.68 2.01 3.96 7.15 6.11

41 DWS Treasury Fund - Cash - Reg - Growth

Jul 24, 2011

0.58 1.77 3.83 7.12 N/A

42 Kotak Liquid - Regular - Growth Jul 24, 2011

0.66 2.00 4.02 7.11 5.96

43 Templeton India TMA Liquid Plan - Growth

Jul 24, 2011

0.68 1.99 3.91 7.07 5.95

44 Canara Robeco Liquid - Growth Jul 24, 2011

0.67 1.98 3.89 7.05 6.22

63

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=CM019

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=TM052

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=TM052

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=KM022

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=DB298


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=UT141


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=BM004


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=FD015

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=PR004


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=LT001





http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AG009


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=KP007



http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=LC043

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=LC043

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=IN006



45 ICICI Prudential Liquid Plan - Growth Jul 24, 2011

0.66 1.97 3.89 6.95 5.90

46 Birla Sun Life Cash Plus - Retail - DAP

Jul 24, 2011

0.65 1.97 3.82 6.78 N/A

47 Edelweiss Liquid Fund - Ret - Growth

Jul 24, 2011

0.68 2.01 3.79 6.63 N/A

48 Tata Liquidity Management Fund - Growth

Jul 24, 2011

0.59 1.74 3.58 6.55 4.74

49 Bharti AXA Liquid Fund - Reg - Growth

Jul 24, 2011

0.65 1.86 3.57 6.55 5.58

50 HSBC Cash Fund - Reg - Growth Jul 24, 2011

0.60 1.81 3.60 6.53 4.83

51 ICICI Prudential Sweep Plan - Cash Option - Growth

Jul 24, 2011

0.72 2.07 3.65 6.52 5.51

52 HDFC Cash Mgmt Fund - Call Plan - Growth

Jul 24, 2011

0.60 1.83 3.40 6.35 5.16

53 Sundaram Money Fund - Growth Jul 22, 2011

0.60 1.77 3.43 6.22 5.50

54 PRINCIPAL Money Manager Fund - Growth

Jul 24, 2011

0.56 1.61 3.04 6.14 2.75

55 Mirae Asset Cash Management Fund - Growth

Jul 24, 2011

0.56 1.64 3.07 5.89 N/A

56 Religare Overnight Fund - Growth Jul 24, 2011

0.55 1.63 3.00 5.84 4.19

57 ICICI Prudential Sweep Plan Jul 24, 2011

0.66 1.91 3.28 5.71 4.74

58 Mirae Asset Liquid Fund - Reg - Growth

Jul 24, 2011

0.53 1.54 2.88 5.43 0.88

59 Pramerica Liquid Fund - Growth Jul 24, 2011

0.72 2.13 4.26 N/A N/A

60 Union KBC Liquid Fund - Growth Jul 24, 2011

0.70 N/A N/A N/A N/A

METHODOLOGY:

(a) OBJECTIVES:

64

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=UK007

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=PM005

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=MR007


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=PI050






http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=SN007





http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=HS006

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=BA002

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=BA002



http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=ED018

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=ED018




The main objective of this project is concerned with the satisfaction level of

investors invested in liquid funds.

To generate awareness among various sectors about liquid funds and to know the

perception towards it.

To know the preference of investors while investing with respect to risk, return,

liquidity, wealth, tax and short term parking of funds.

(b) RESEARCH METHODOLOGY:

The population of the study was Gwalior. Here, total 72 respondents were selected to give their

responses on in the different question s asked in the questionnaire. The respondents belong to

different categories like (chartered accountant, doctors, and businessman). The samples were

selected by contacting the individual sample element.

(c) TOOLS:

For data analysis: T test (independent sample t test) was used to find out differences in the

perception and satisfaction level of different samples.

Independent sample t test: Independent sample t-test is a statistical technique that is used to

analyze the mean comparison of two independent groups. In independent samples t-test, when

we take two samples from the same population, then the mean of the two samples may be

identical. But when samples are taken from two different populations, then the mean of the

sample may differ. In this case, independent sample t-test is used to draw conclusions about the

means of two populations, and used to tell whether or not they are similar

DATA ANALYSIS:

65

HYPOTHESIS:

Null (H01): The means of the two groups (businessman and chartered accountant) are not

significantly different.

Alternate: The means of the two groups are significantly different

SPSS Output:

1) Following is a sample output of an independent samples T test. We compared

the mean satisfaction level for liquid funds between businessman (group-1)

and chartered accountant (group-2).

Group Statistics

GroupingN Mean Std. Deviation Std. Error Mean

totaldimension1

1.00 12 40.0833 5.38446 1.55436

2.00 12 43.1667 6.80686 1.96497

Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-2

is higher than that of the group-1. That is, satisfaction level for liquid fund has, on average,

higher in case of chartered accountant than businessman.

Independent Samples Test

Levene's Test

for Equality of

Variances t-test for Equality of Means

F Sig. t df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

total Equal variances

assumed

1.577 .222 -1.231 22 .231 -3.08333 2.50542 -8.27926 2.11260

Equal variances

not assumed

-1.231 20.893 .232 -3.08333 2.50542 -8.29528 2.12861

Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is not

significant. Here, we see that the significance is .222, which is greater than .05. We can assume

66

that the variances are approximately equal. Finally, we see the results of the Independent

Samples T Test. Based on the results of our Levene's test;

T value is -1.231

We have 22 degrees of freedom.

Sig. level is .231 i.e. 23.1 %

Therefore we fail to reject the null hypothesis (H01) and there is no significant difference

between the two groups (the significance is greater than .05).Therefore, we can say that there is

no significant difference between the satisfaction level between businessman and chartered

accountant invested in liquid funds.

HYPOTHESIS:

Null (H02): The means of the two groups (chartered accountant and doctors) are not significantly

different.


SPSS Output:

2) Following is a sample output of an independent samples T test. We compared the

mean satisfaction level for liquid funds between chartered accountant (group-2) and

doctors (group-3)

Group Statistics

groupingN Mean Std. Deviation Std. Error Mean

totaldimension1

2.00 12 43.1667 6.80686 1.96497

3.00 12 32.5833 2.53909 .73297

67



higher in case of chartered accountant than doctors.


Levene's Test

for Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper


assumed

12.863 .002 5.046 22 .000 10.58333 2.09723 6.23395 14.93271

Equal variances

not assumed

5.046 14.003 .000 10.58333 2.09723 6.08532 15.08135

Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is

significant. Here, we see that the significance is .002, which is not greater than .05. We can

assume that the variances are not approximately equal.Finally; we see the results of the

Independent Samples T Test. Based on the results of our Levene's test;

T value is 5.046

We have 14.003 degrees of freedom.

Sig. level is .000 i.e. 0 %

Therefore we reject the null hypothesis (H02) and there is significant difference between the two

groups (the significance is not greater than .05).

Therefore, we can say that there is significant difference between the satisfaction level between

doctors and chartered accountant invested in liquid funds.

68

HYPOTHESIS:

Null (H03): The means of the two groups (businessman and doctors) are not significantly

different.


SPSS Output:


mean satisfaction level for liquid funds between businessman (group-1) and doctors

(group-3)

Group Statistics


totaldimension1

1.00 12 40.0833 5.38446 1.55436

3.00 12 32.5833 2.53909 .73297



higher in case of businessman than doctors


Levene's Test

for Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Total Equal variances

assumed

3.661 .043 4.364 22 .000 7.50000 1.71851 3.93602 11.06398

Equal variances

not assumed

4.364 15.662 .001 7.50000 1.71851 3.85051 11.14949

69



assume that the variances are not approximately equal. Finally, we see the results of the

Independent Samples T Test. Based on the results of our Levene's test;

T value is 4.364


Sig. level is .001 i.e. 0.1%

Therefore we reject the null hypothesis (H03) and there is significant difference between the two


Therefore, we can say that there is significant difference between the satisfaction level between

businessman and doctors invested in liquid funds.

HYPOTHESIS:


different. Alternate: The means of the two groups are significantly different

SPSS Output:


mean perception for investing in liquid funds between businessman (group-1) and

doctors (group3)

Group Statistics


totaldimension1

1.00 12 43.2500 2.52713 .72952

2.00 12 41.5833 6.22982 1.79839

70


is higher than that of the group-2. That is, perception for investing in liquid fund has, on average,

higher in case of businessman than chartered accountant.


Levene's Test

for Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper


assumed

11.774 .002 .859 22 .400 1.66667 1.94073 -2.35815 5.69148

Equal variances

not assumed

.859 14.525 .404 1.66667 1.94073 -2.48171 5.81505



assume that the variances are not approximately equal.

Finally, we see the results of the Independent Samples T Test. Based on the results of our

Levene's test;

T value is 0.859


Sig. level is .404 i.e. 40.4 %

Therefore we fail to reject the null hypothesis and there is no significant difference between the

two groups (the significance is greater than .05).

Therefore, we can say that there is no significant difference between the perception for

investment in liquid fund between businessman and chartered accountant.

71

HYPOTHESIS:

Null (H05): The means of the two groups (chartered accountant and doctors) are not significantly

different.


SPSS Output:


mean perception for investing in liquid funds between chartered accountant (group-

2) and doctors (group-3)

Group Statistics


totaldimension1

2.00 12 41.5833 6.22982 1.79839

3.00 12 38.9167 3.89541 1.12451

Firstly, we see the descriptive statistics for the two groups. We see that the

mean for the group-2 is higher than that of the group-3. That is, perception

for investing in liquid fund has, on average, higher in case of chartered

accountant than doctors.


Levene's Test

for Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper


assumed

4.110 .055 1.257 22 .222 2.66667 2.12102 -1.73207 7.06540

Equal variances

not assumed

1.257 18.461 .224 2.66667 2.12102 -1.78147 7.11481

72



that the variances are approximately equal.Finally, we see the results of the Independent Samples

T Test. Based on the results of our Levene's test; we know that we have approximately equal

variance, so we will read the top line.

T value is 1.257



Therefore we fail to reject the null hypothesis and there is no significant difference between the

two groups (the significance is greater than .05).

Therefore, we can say that there is no significant difference between the perception for investing

in liquid fund between doctors and chartered accountant.

HYPOTHESIS:


different.


SPSS Output:


mean perception for investing in liquid funds between businessman (group-1) and

doctors (group-3)

73

Group Statistics


totaldimension1

1.00 12 43.2500 2.52713 .72952

3.00 12 38.9167 3.89541 1.12451


is higher than that of the group-3. That is, perception for investing in liquid fund has, on average,

higher in case of businessman than doctors.


Levene's Test

for Equality of


F Sig. t df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Total Equal variances

assumed

2.232 .149 3.233 22 .004 4.33333 1.34042 1.55348 7.11319

Equal variances

not assumed

3.233 18.866 .004 4.33333 1.34042 1.52646 7.14021



that the variances are approximately equal.

Finally, we see the results of the Independent Samples T Test. Based on the results of our

Levene's test;

T value is 3.233



74

Therefore we reject the null hypothesis and there is significant difference between the two


Therefore, we can say that there is significant difference between the perception for investing in

liquid funds between businessman and doctors.

RESULTS:

Firstly, from the above statistical independent sample T test it is calculated that there

is no difference in satisfaction level between the businessman and chartered

accountant invested in liquid funds. Both are approximately equally satisfied with the

returns, tax savings and past performance of their funds.

But there is a difference between businessman and doctors who invested in liquid

funds as from the above test it is calculated that businessman are more satisfied with

returns, tax saving and past performance of their fund than doctors.

Also in the case of comparison with chartered accountant and doctors there is a

difference between satisfaction levels as chartered accountant are more satisfied than

doctors.

Secondly, if we see the result of investors who do not invest in liquid funds stated in

above statistical calculation that, there is a difference between businessman and

doctors perception to enjoy advantages of liquid funds. As businessman are more

interested than doctors.

But there is no difference between the perception of chartered accountant and doctors

and same in case of comparison between businessman and chartered accountant.

SUGGESTIONS:

The most vital problem spotted is of ignorance. Investors should be made aware of the

benefits. Nobody will invest until and unless he is fully convinced. Investors should be

75

made to realize that ignorance is no longer bliss and what they are losing by not

investing.

Mutual funds offer a lot benefit which no other single option could offer. But most of the

people are not even aware of what actually a mutual fund is? So the advisors should try to

change their mindsets. The advisor should target more n more of young investors and the

persons at the height of their career would like to go for advisors due to lack of expertise

and time.

The advisors may try to highlight some of the value added benefit, rupee cost averaging,

and the systematic transfer plan, rebalancing etc. these options are not offered by other

options single-handedly. So these are the enough to drive the investors towards mutual

funds. Investors could also try to increase the spectrum of services offered.

Now the most important reason for not availing the services of advisors was spotted of

being expensive. The advisor should try to charge nominal fees at the beginning or they

can offer more services and benefits at existing rate. They should also follow the decency

and follow the code of ethics so that the investor could trust upon them.

IMPLICATIONS:

In today’s complex financial environment, investors have unique needs which are derived from

their risk appetite and financial goals. But regardless of this, every investor seeks to maximize

his returns and safety on his investments without capital erosion.

And investment in liquid funds has advantages in terms of liquidity, safety and portability. They

can be redeemed within 24 hours and have no exit load.

Liquid funds, an attractive alternative for parking funds lying idle in savings bank accounts.

Reason: they offer higher post-tax returns, are liquid and provide a reasonable degree of safety in

terms of the principal invested. The study is useful for:

Investors who are in higher tax bracket and prefer short term parking of fund can

evaluate through my research the advantages and satisfaction level of other investors

investing in liquid funds.

76

Organization can evaluate the satisfaction level and perception of investors and can

improve the products facilities to attract more investors.

It will help the students to know the fundamental and technical aspect about liquid funds.

It is also beneficial for the institutional investors to know the investors outlook towards

liquid fund.

CONCLUSION:

Hence, from the above research it can be analyzed that overall businessman and chartered

accountant are more satisfied than doctors and businessman and chartered accountant are equally

satisfied. secondly, there is no significant difference between the perception of businessman and

chartered accountant and same with chartered accountant and doctors but the perception of

businessman and doctors are varies.

ANNEXURE:

QUESTIONNIARE

GENERAL QUESTION

Where do you generally prefer to invest in?

1. public provident fund

77

2. fixed deposit

3. Mutual fund

4. Real estate

5. Gold

6. Life insurance

. For how much period you would prefer to invest?

1. Short term ( 0-5) (b) long term (5& above)

Rate the following items affecting your investment decisions on a scale of 1-5

where 1 stands for maximum agreement and 5 stands for maximum

agreement.

1. How far do you invest according to taxable income?

1 2 3 4 5

2. Up to what extent you have done tax planning?

1 2 3 4 5

3. How much does return on investment matter to you?

1 2 3 4 5

4. How much does lock-in-period matter to you?

1 2 3 4 5

78

5. Up to what extent your investment allows tax exemption benefits?

1 2 3 4 5

6. Your attitude towards risk?

1 2 3 4 5

7. Are you aware of liquid funds?

1. Yes [ ] (b) No [ ]

IF YES:

8. Up to what extent you are satisfied with returns?

1 2 3 4 5

9. Up to what extent you are enjoying taxation benefits?

1 2 3 4 5

10. Your satisfaction level with past performance of your fund?

1 2 3 4 5

11. Rate the risk factor.

1 2 3 4 5

12. Your satisfaction level in comparison to bank FDs?

1 2 3 4 5

13. Up to what extent you are planning to invest in?

1 2 3 4 5

79

IF NO:

14. Up to what extent would you like to invest in scheme with short tenure say no lock-in-period?

1 2 3 4 5

15. If you are in a higher tax bracket, up to what extent you like to gain maximum tax efficient returns?

1 2 3 4 5

16 Up to what extent would you like to enjoy easy liquidity of your investment?

1 2 3 4 5

17. How far do you invest in a scheme with good returns, low risk and taxation Benefits?

1 2 3 4 5

18. Would you go for the product with short tenure and great tax benefit to invest in to meet short term

goals?

1 2 3 4 5

GLOSSARY:

1. Account Statement: Statement issued by the mutual fund, in lieu of the unit certificate,

giving details of transactions and holdings of an investor in the different schemes of the

fund.

80

2. Adjusted NAV: The Net Asset Value after adjusting for all changes caused due to

dividend declaration, bonus etc. assuming reinvestment of distributions made to the

investors at the prevailing NAV.

3. Annual Report: The yearly record of scheme's performance, and is distributed to

investors and/or shareholders under SEBI regulations.

4. Applicable NAV: It is the NAV that will be applied for a transaction depending upon the

cutoff time specified by the Mutual Fund. All investments or redemptions are processed

at that particular NAV. A different NAV holds if received after the cutoff time.

5. Asset Allocation: The distribution of total funds available with the scheme into

instruments of various types such as stocks, bonds etc. based on the scheme's investment

objective as detailed in the offer document.

6. Asset Management Company: It is the investment manager for the mutual fund. It is a

company set up primarily for managing the investment of mutual funds and makes

investment decisions in accordance with the scheme objectives, deed of Trust and other

provisions of the Investment Management Agreement. For Tata Mutual Fund, Tata Asset

Management Limited is the Asset Management Company.

7. Benchmark: The investment performance of the scheme needs to be compared in

relative terms against some indicator, which is called as the benchmark for the scheme.

For example, the performance of an equity fund is benchmarked against the BSE Sensex.

8. BSE Sensex: A index reflecting the stock prices of 30 companies listed on the Bombay

Stock Exchange (BSE) which is taken to be representative of the stock market

movement.

9. Capital Gains: The profit realizations on sale of securities and certain other capital

assets (including units of mutual funds) are called capital gains. The gains can be

classified into long-term, if the investments are held for more than one year, or short-

term, otherwise, and are charged at different tax rates.

81

10. Close ended schemes: Schemes have a pre-specified maturity period and investments in

these schemes can be made at the time of the IPO and thereafter at market price through

the stock exchange on which the same is listed. The market price is generally at a

discount to the NAV depending upon market perception and expectations of the scheme.

The Fund may also offer an exit route by offering to repurchase at NAV related prices.

11. Compliance Officer SEBI regulations require that an officer be appointed by the AMC to

comply with various regulatory requirements and to redress investor grievances

associated with the funds.

12. Current Load: It refers to the load structure applicable currently on any fund. Funds

keep revising the load structures from time to time.

13. Current Yield: The ratio of coupon interest to the actual market price, prevailing in the

market, of the bond expressed as a percentage: annual interest/ current market value =

current yield.

14. Custodian: SEBI mandates that a Custodian be appointed for safekeeping of a fund's

securities and other assets.

15. Cutoff time: Investments and redemptions are processed at a particular NAV. This NAV

is a function of the cutoff times specified by the fund. For example a fund may 10.00 am

as the cutoff time in the Liquid Fund for previous day NAV. Investment Applications

received after the cutoff time of 10.00 am will get same day NAV, while applications

received before 10 am will get previous day NAV, assuming that there are no

holidays/Sundays involved in between.

16. Debt Fund: Funds that invest predominantly in fixed income bearing instruments such as

corporate debentures, PSU bonds, gilts, treasury bills, certificates of deposit and

commercial papers. These funds are the least risky and are generally preferred by risk-

averse investors. However they are prone to interest rate risk.

17. Diversification/Spreading the risk: Diversification, i.e. investing across a number of

asset classes, assets within a asset class, helps in reducing the risk.

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18. Dividend Plan: Generally a scheme has two plans, Growth Plan and Dividend plan. In

the latter earnings of the scheme are declared as dividends, as and when there is a

distributable surplus available with the scheme as per the Trustees.

19. Dividend Payout: Under the Dividend plan of a scheme there are two options available

to the investor, viz. Dividend Payout option and Dividend Reinvestment option. Under

the Dividend Payout option, the dividend declared is also actually distributed i.e. given to

the investor.

20. Dividend Reinvestment: Under the Dividend plan of a scheme there are two options

available to the investor, viz. Dividend Payout option and Dividend Reinvestment option.

Under the Dividend Reinvestment option, the dividend declared is not distributed i.e.

given to the investor. but reinvested in the scheme itself.

21. Dividend yield: It refers to the dividend earned per unit in Rupees of a scheme at the

prevailing NAV.

22. Duration: This is a tool used to calculate the average holding period of the assets in a

debt scheme, and can help, particularly Modified Duration, in estimating the sensitivity

of a fund to incremental yield movements.

23. Entry Load: It is the load charged by the fund when one invests into the fund. It

increases the price of the units to more than the NAV and is expressed as a percentage of

NAV. For example a 1 % entry load will increase the NAV from Rs 11 to Rs 11.11 and

therefore the number of units allotted will be lesser to that extent.

24. Expense Ratio: The Expenses of a scheme include management fees and all the fees

associated with the scheme's daily operations. Expense Ratio refers to the annual

percentage of fund's assets that is paid out in expenses and can effect the performance of

the scheme.

25. Exit Load: It is the load charged by the fund when one redeems the units from the fund.

It reduces the price of the units to less than the NAV and is expressed as a percentage of

NAV.

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26. Face Value: The original issue price of one unit of a scheme, generally Rs 10.

27. First In First Out: It is an accounting method which assumes that the units purchased

first are the units sold/redeemed first.

28. Fund Manager: H/She is the person who makes all the investment decisions for

deployment of the funds of a scheme.

29. Gilts/Government Securities: Securities created and issued by the Central Government

and/or a State Government, and may include securities unconditionally guaranteed by the

Government. The coupon on these securities is determined by an auction process.

30. Gilt Funds: Gilt Funds are those schemes which as per their offer document can invest

only in government securities of different maturities. They offer lower returns as the

credit risk is virtually absent and there are no chances of government defaulting on its

payment obligations. This effectively reduces the yield on them. They are still subject to

the interest rate risk.

31. Growth Plan: The Growth plan of a scheme retains/ploughs back the earnings, instead of

declaring dividends of the scheme. The returns from the investor's point of view are

accumulated within the scheme. Growth Plan is different from the Dividend

Reinvestment Option as in the latter dividends are declared but not distributed, while in

the Growth Plan the dividends are not declared. There are differing implications for tax

computation.

32. Guaranteed Returns: Returns from mutual fund schemes are subject to market and

other investment risks. As such there are no assured/guaranteed returns in mutual funds.

This applies even to debt schemes. The launch of scheme/fund offering guaranteed

returns is now subject to certain restrictions imposed by the SEBI, and generally SEBI

does not allow guaranteed returns.

33. Index Funds: A type of mutual fund in which the portfolios are constructed to mirror a

specific market index. Securities are purchased in the same proportions as in the selected

Index. Index funds are expected to provide a rate of return over time that will

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approximate or match, but not exceed, that of the index which they are mirroring. The

focus is on passive investment style.

34. Indexation: The capital gains arising out of selling mutual fund units are taxed at Long

Term Capital Gains rate if they are held for more than one year. The Long term capital

gains rate can be computed either as 10 % flat or 20 % with indexation benefit. For this

the government has specified an index linked to the wholesale price index. The indices of

two years (year of purchase and the year of sale) are used for the purpose of computing

capital gains tax. The purchase price is multiplied by the index of the year of sale and the

product is divided by the index of the year of purchase. This indexed purchase price is

deducted from the sale price to calculate the indexed capital gains. The tax rate of 20 % is

applied to the indexed capital gains.

35. Inflation: The rise in prices of goods and services over a period of time.

36. Inflation Risk: The probability of the value of an asset being eroded on account of

inflation.

37. Liquid Funds: Funds, as per their offer documents, investing only in short-term money

market instruments including treasury bills, commercial paper and certificates of deposit.

The objective is to provide liquidity and preserve the capital.

38. Liquidity: From the Fund management point of view, the cash and cash equivalent assets

available with a fund to meet expenses and immediate redemption requirements of the

investors. It refers to the ability to buy or sell an asset quickly or the ability to convert to

cash quickly. From the Investor point of view, it reflects the ease and speed with which

an investor can convert his/her unit holdings into cash.

39. Lock-in period: The cooling period after investment in fresh units during which the

investor cannot redeem the units.

40. Management Fee: The fees charged to a scheme for investment management of the

funds under the scheme, usually expressed as percentage of assets, and is subject to

limits prescribed by SEBI.

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41. Market Risk: It refers to the risk posed by the market in itself i.e. the risk that the price

of a security will rise or fall due to changing economic, political, or market conditions.

42. Money Market: It refers to a market for very short-term securities less than a year, such

as Treasury Bills and Call Money make up the bulk of trading in the money markets.

43. Mutual Funds: An investment company/trust that pools money from unit holders and

invests that money into a variety of securities, including stocks, bonds, and money-

market instruments as defined in the offer document of the specific mutual fund.

44. Net Asset Value: The value of fund's portfolio at market value less current liabilities and

other accrued expenses divided by the number of units outstanding. Net asset value is

normally computed daily.

45. No Load: It refers to the fund that does not charge any load for buying or selling its

units, i.e. the investor can transact at the NAV.

46. Non Performing Assets: Assets that do not provide returns are classified as NPAs as per

the provisions of SEBI regulations.

47. Offer Document: It is the official document issued by mutual funds prior to the launch

of a fund describing the characteristics of the proposed scheme/fund to all its prospective

investors. It contains information required by SEBI pertaining to issues such as

investment objective and policies, services, and fees.

48. Open Ended Fund/Scheme: It is a type of a scheme/fund where purchase or sale of

units is offered on a continued basis at NAV related prices.

49. Redemption: An investor wishing to withdraw his/her investment from a scheme/fund

gives a redemption transaction. The investor is paid a NAV linked price.

50. Risk Adjusted Returns: For the purpose of comparing returns across schemes involving

varying levels of risk, the returns are adjusted for the level of risk before comparison.

Such returns (reduced for the level of risk involved) are called risk-adjusted returns.

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51. Sale Price: The price at which a fund offers to sell one unit of its scheme to investors.

This NAV is grossed up with the entry load applicable, if any.

52. Sponsors: A sponsor is the person who, acting alone or in combination with another

body or corporate, establishes a mutual fund and applies to SEBI for its registration. As

per SEBI regulations, the sponsor has to contribute a minimum of 40% of the net worth

of the AMC.

53. Systematic Investment Plan (SIP): It is a plan offered to facilitate systematic

investments at regular intervals so that an investor can give post-dated cheques to the

mutual fund to allot fresh units at specified intervals (usually monthly or quarterly). On

the specified dates, the Cheque are realized by the mutual fund and additional units at the

prevailing NAV are allotted to the investor. SIP helps investors to average the cost of

acquisition.

54. Systematic Withdrawal Plan (SWP): It is the opposite of SIP and facilitates regular

withdrawals. This helps investors in meeting their regular financial needs.

55. Total Return: Return on investment, calculated after taking into account capital

appreciation, dividends or interest, and individual tax considerations adjusted for present

value and expressed on an annualized basis.

56. Trustee: The Trustees comprise the Trust and having an overall supervisory authority

over the AMC. They ensure that the AMC follow the trust deed, the SEBI regulations and

the offer document and the assets of the funds are held safely.

57. Yield Curve: The curve gives the relationship between yields on a group of fixed-

income securities with varying maturities viz. treasury bills, notes, and bonds. The curve

typically slopes upward since longer maturities normally have higher yields, although it

can be flat or even inverted.

58. Yield to Maturity: Used to determine the rate of return an investor will receive if a long-

term, interest-bearing investment, such as a bond is held to its maturity date. It takes into

account purchase price, redemption value, time to maturity, coupon yield and the time

between interest payments.

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REFERENCES:

www.birlamutualfund.com

www.mutualfundindia.com

www.moneycontrol.com

www.theeconomictime.com

www.ineindia.com

www.valuesearchonline.com

www.investopidia.com

Fatchsheets and statements of Birla sun life

The economics times

88

http://www.investopidia.com/

http://www.valuesearchonline.com/

http://www.ineindia.com/

http://www.theeconomictime.com/

http://www.moneycontrol.com/

http://www.mutualfundindia.com/

http://www.birlamutualfund.com/

final project report of birla sun life mutual fund

Documents

mutual funds chapter

project report

liquid funds

satisfaction level

gwalior affiliates

award of master

life mutual fund city

jiwaji university gwalior