Internship Report - Federal Bank

A study of Mutual fund investor behaviour in
Federal bank
Summer Intern Project report submitted in partial fulfilment of the
requirements for the degree of
Master of Business Administration
By
Pooja Raj
Under the guidance of
Mr. Charly Devasia
Manager
Federal bank
Bangalore
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Institute of Management, Christ University
Acknowledgement
Any accomplishment requires effort of many people and this work is no difference. I
have been fortunate enough to get help and guidance from many people. Firstly, I would like
to thank Federal Bank for giving me an opportunity to do an internship study at their branch
in Bangalore.
I would not have completed this study without the help, guidance and support of my
Corporate mentor Mr. Charly Devasia who has been supporting and guiding me throughout
the study of my project. I would like to express my deepest and sincere gratitude to my
Faculty mentor Prof. Padma Srinivasan for her invaluable guidance, support and advice. This
project would not be completed without their guidance as they were motivating and inspiring
me throughout the duration of the project.
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EXECUTIVE SUMMARY
Mutual funds are apparently the least demanding and the minimum upsetting approach to put
resources into stocks. Quite a lot of cash has been put resources into mutual funds amid the
previous couple of years. Any speculator might want to put resources into reputed Mutual
Fund association. Federal bank is one such association that aims to give superior schemes of
Mutual Fund. Understanding the attitude of investors on their speculation would help the
organization to expand their investor profile in mutual fund by giving superior schemes
indirectly resulting in an increase in their income as well as bottom line profit. In Federal
bank they accept that the investors mentality would bring about benefits.
The study was done on the topic Mutual fund investors behaviour in Federal Bank. The
study goes for investigating the state of mind of the investors towards Federal Bank Mutual
Funds. The information was gathered with the assistance of a survey. The example size
considered for the study was 50 wherein all the samples were Customers and investors of
Federal Bank in Bangalore.
The analysis was in regards to the factors considered for investment and the type and kind of
mutual funds preferred with stated objectives behind the investment and the tools used was
simple percentage analysis. The study uncovered that the financial specialists aren't totally
fulfilled by the mutual fund choices provided and there is absence of mindfulness made by
the bank to investors, along these lines taking into account the analysis Suggestions for
development are given.
.
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TABLE OF CONTENTS
Page No.
Introduction
2-11
Industry Profile
13-20
Company Profile
22-27
Objectives of the study
Project / Process Design and Methodology
31-32
Data Analysis / Process Study
34-45
Findings from the study
47-49
Learning outcome from the study and during the period of internship
at the company
51-52
References, Bibliography and Appendices
29
53
CHAPTER 1
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INTRODUCTION
Mutual fund is a type of professionally managed investment fund that pools money from
many investors to purchase securities such as stocks, bonds, money market instruments and
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similar assets. Mutual funds are operated by money managers, who invest the fund's capital
and attempt to produce capital gains and income for the fund's investors.
Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such
as shares, debentures and other securities. The income earned through these investments and
the capital appreciation realised are shared by its unit holders
in proportion to the number of units owned by them .Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. The flowchart below
describes broadly the working of a mutual fund:
The simplest mutual funds definition is that they are an investment group set up by
professional investors and headed by an investment manager. Individuals are then able to
invest small amounts of money into the fund for making a reasonable profit. There are an
incredibly large number of mutual funds. While some mutual funds aim to produce short
term, high yield profits, others look for the long term profit.
The benefits on offer are many with good post-tax returns and reasonable safety being the
hallmark that we normally associate with them. Some of the other major benefits of investing
in them are:
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Manage Inflation
Mutual Funds help investors generate better inflation-adjusted returns, without spending a lot
of time and energy on it. While most people consider letting their savings 'grow' in a bank,
they don't consider that inflation may be nibbling away its value.
Mutual Funds provide an ideal investment option to place your savings for a long-term
inflation adjusted growth, so that the purchasing power of your hard earned money does not
plummet over the years.
Expert Managers
Backed by a dedicated research team, investors are provided with the services of an
experienced fund manager who handles the financial decisions based on the performance and
prospects available in the market to achieve the objectives of the mutual fund scheme.
Mutual fund managers and analysts wake up each morning dedicating their
professional lives to researching and analysing current and potential holdings for their mutual
fund.
Number of available options
Mutual funds invest according to the underlying investment objective as specified at the time
of launching a scheme. So, we have equity funds, debt funds, gilt funds and many others that
cater to the different needs of the investor. The availability of these options makes them a
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good option. While equity funds can be as risky as the stock markets themselves, debt funds
offer the kind of security that is aimed for at the time of making investments.
Money market funds offer the liquidity that is desired by biginvestors who wish to park
surplus funds for very short-term periods. Balance Funds cater to the investors having an
appetite for risk greater than the debt funds but less than the equity funds. The only pertinent
factor here is that the fund has to be selected keeping
the risk profile of the investor in mind because the products listed above have different risksa
ssociated with them. So, while equity funds are a good bet for a long term, they may not find
favour with corporates or High Net worth Individuals (HNIs) who have short-term needs.
Diversification
Investments are spread across a wide cross-section of industries and sectors and so the risk is
reduced. Diversification reduces the risk because all stocks dont move in the same direction
at the same time. One can achieve this diversification through a Mutual Fund with far less
money than one can on his own.
Professional Management
Mutual Funds employ the services of skilled professionals who have years of experience to
back them up. They use intensive research techniques to analyse each investment option for
the potential of returns along with their risk levels to come up with the figures for
performance that determine the suitability of any potential investment.
Potential of Returns
Returns in the mutual funds are generally better than any other option in any other avenue
over a reasonable period of time. People can pick their investment horizon and stay put in the
chosen fund for the duration. Equity funds can outperform most other investments over long
periods by placing long-term calls on fundamentally good stocks. The debt funds too will
outperform other options such as banks. Though they are affected by the interest rate risk in
general, the returns generated are more as they pick securities with different duration that
have different yields and so are able to increase the overall returns from the portfolio.
Liquidity
Fixed deposits with companies or in banks are usually not withdrawn
premature because there is a penal clause attached to it. The investors can withdraw or redee
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mmoney at the Net Asset Value related prices in the open-end schemes. In closed-end
schemes, the units can be transacted at the prevailing market price on a stock exchange.
Mutual funds also provide the facility of direct repurchase at NAV related prices.
The market prices of these schemes are dependent on the NAVs of funds and may trade at
more than NAV (known as Premium) or less than NAV (known as Discount)depending on the
expected future trend of NAV which in turn is linked to general market conditions. Bullish
market may result in schemes trading at Premium while in bearish markets the funds usually
trade at Discount. This means that the money can be withdrawn anytime, without much
reduction in yield. Some mutual funds however, charge exit loads for withdrawal within a
period linked to
Well-Regulated
Unlike the company fixed deposits, where there is little control with theinvestment being
considered as unsecured debt from the legal point of view, the Mutual Fund industry is very
well regulated. All investments have to be accounted for, decisions judiciously taken. SEBI
acts as a true watchdog in this case and can impose penalties on the AMCs at fault. The
regulations, designed to protect the investors interests are also implemented effectively.
Transparency
Being under a regulatory framework, mutual funds have to disclose their holdings,
investment pattern and all the information that can be considered as material, before all
investors. This means that the investment strategy, outlooks of the
market andscheme related details are disclosed with reasonable frequency to ensure thattrans
parency exists in the system. This is unlike any other investment option in India where the
investor knows nothing as nothing is disclosed.
Flexible, Affordable and a Low Cost affair
Mutual Funds offer a relatively less expensive way to invest when compared to other avenues
such as capital market operations. The fee in terms of brokerages, custodial
fees and other management fees are substantially lower than other options and aredirectly
linked to the performance of the scheme. Investment in mutual funds also offers a lot of
flexibility with features such as regular investment plans, regular withdrawal
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plans and dividend reinvestment plans enabling systematic investment or withdrawal of

funds. Even the investors, who could otherwise not enter stock markets with low investible
funds, can benefit from a portfolio comprising of high-priced stocks because they are
purchased from pooled funds.
It all depends really on the overall investment climate and the sectors in which funds are
flowing in. Diversification is definitely a good approach when it comes to successful
investing by a reasonable investor. But with mutual funds, there is that the controllers may
over-diversify. Diversification minimizes the inherent risks of stock trading by spreading out
the capital over many stocks. But over-diversification is again a bad thing.
Types of Mutual funds
Based on the maturity period

Open-ended Fund
An open-ended fund is a fund that is available for subscription and can be redeemed on a
continuous basis. It is available for subscription throughout the year and investors can buy
and sell units at NAV related prices. These funds do not have a fixed maturity date. The key
feature of an open-ended fund is liquidity.
Close-ended Fund
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A close-ended fund or scheme has a stipulated maturity period eg five and seven years. The
fund is open for subscription only during a specified period at the time of launch of the
scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter
they can buy or sell the units of the scheme on the stock exchanges where the units are listed.
In order to provide an exit route to the investors, some close-ended funds give an option of
selling back the units to the mutual fund through periodic repurchase at NAV related prices.
SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor
ie either repurchase facility or through listing on stock exchanges. These mutual funds
schemes disclose NAV generally on weekly basis.
Interval Funds
Interval funds combine the features of open-ended and close-ended funds. These funds may
trade on stock exchanges and are open for sale or redemption at predetermined intervals on
the prevailing NAV.
Based on investment objectives
Equity/Growth Funds
Equity/Growth funds invest a major part of its corpus in stocks and the investment objective
of these funds is long-term capital growth. When you buy shares of an equity mutual fund,
you effectively become a part owner of each of the securities in your funds portfolio. Equity
funds invest minimum 65% of its corpus in equity and equity related securities. These funds
may invest in a wide range of industries or focus on one or more industry sectors. These types
of funds are suitable for investors with a long-term outlook and higher risk appetite.
Debt/Income Funds
Debt/ Income funds generally invest in securities such as bonds, corporate debentures,
government securities (gilts) and money market instruments. These funds invest minimum
65% of its corpus in fixed income securities. By investing in debt instruments, these funds
provide low risk and stable income to investors with preservation of capital. These funds tend
to be less volatile than equity funds and produce regular income. These funds are suitable for
investors whose main objective is safety of capital with moderate growth.
Balanced Funds
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Balanced funds invest in both equities and fixed income instruments in line with the predetermined investment objective of the scheme. These funds provide both stability of returns
and capital appreciation to investors. These funds with equal allocation to equities and fixed
income securities are ideal for investors looking for a combination of income and moderate
growth. They generally have an investment pattern of investing around 60% in Equity and
40% in Debt instruments.
Money Market/ Liquid Funds
Money market/ Liquid funds invest in safer short-term instruments such as Treasury Bills,
Certificates of Deposit and Commercial Paper for a period of less than 91 days. The aim of
Money Market /Liquid Funds is to provide easy liquidity, preservation of capital and
moderate income. These funds are ideal for corporate and individual investors looking for
moderate returns on their surplus funds.
Gilt Funds
Gilt funds invest exclusively in government securities. Although these funds carry no credit
risk, they are associated with interest rate risk. These funds are safer as they invest in
government securities.
Index Funds
These funds aim to track the performance of a specific index such as the S&P/TSX
Composite Index. The value of the mutual fund will go up or down as the index goes up or
down. Index funds typically have lower costs than actively managed mutual funds because
the portfolio manager doesnt have to do as much research or make as many investment
decisions. Index funds replicate the portfolio of a particular index such as the BSE Sensitive
index, S&P NSE 50 index (Nifty), etc.
These schemes invest in the securities in the same weightage comprising of an index. NAVs
of such schemes would rise or fall in accordance with the rise or fall in the index, though not
exactly by the same percentage due to some factors known as "tracking error" in technical
terms. Necessary disclosures in this regard are made in the offer document of the mutual fund
scheme. There are also exchange traded index funds launched by the mutual funds which are
traded on the stock exchanges.
Sector specific funds/schemes
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These are the funds/schemes which invest in the securities of only those sectors or industries
as specified in the offer documents. Eg Pharmaceuticals, Software, Fast Moving Consumer
Goods (FMCG), Petroleum stocks, etc The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may give higher returns,
they are more risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors/industries and must exit at an appropriate time. They may also
seek advice of an expert.
Tax saving schemes
These schemes offer tax rebates to the investors under specific provisions of the Income Tax
Act, 1961 as the Government offers tax incentives for investment in specified avenues. Eg
Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also
offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities.
Their growth opportunities and risks associated are like any equity-oriented scheme.
Load or no-load fund
A load fund is one that charges a percentage of NAV for exit. That is, each time one sells
units in the fund, a charge will be payable. This charge is used by the mutual fund for
marketing and distribution expenses.
A no-load fund is one that does not charge for exit. It means the investors can exit the
fund/scheme at no additional charges are payable on sale of units.
Assured return scheme
Assured return schemes are those schemes that assure a specific return to the unitholders
irrespective of performance of the scheme. A scheme cannot promise returns unless such
returns are fully guaranteed by the sponsor or AMC and this is required to be disclosed in the
offer document period of the scheme or only for a certain period. Some schemes assure
returns one year at a time and they review and change it at the beginning of the next year.
Major mutual fund companies in India:
Large cap oriented equity
Diversified equity funds
Small and mid-cap equity
funds
Franklin India opportunities
Franklin India high growth
funds
Canara Robeco emerging
Index fund
companies fund
equities
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SBI Blue chip fund
ICICI Prudential exports and
Principle emerging blue-chip
Tata equity opportunities fund
Other services fund

ICICI Prudential value
funds
Tata mid cap growth fund
Birla sun life top 100 fund

Kotak opportunities
Discovery fund
Tata ethical fund
UTI MNC fund
Birla sun life MNC fund

DSP blackrop micro-cap fund
Index funds
Goldman Sachs exchange
Gilt funds
L&T Gilt
Balanced funds
Tata balanced funds
traded scheme
Kotak Nifty ETF
SBI Magnum gilt fund- long
Franklin India balance fund
HDFC Index fund

Reliance Index fund
UTI Nifty Index fund
term
Birla sun life gilt plus
HDFC Gilt fund
IDFC G sec fund
HDFC balanced fund

SBI Magnum balanced fund
Birla sun life 95 fund
How to calculate mutual fund performance

There are many ways in calculating mutual fund performance depending upon the type of one
is looking into, the objective stated behind investment as well as the financial market
condition. The few common measures are as follows:
Change in NAV
For changes in NAV in absolute terms:
NAV = NAV at the end of the period NAV at the beginning of the period
For NAV changes in percentage terms:
NAV = Absolute change in NAV/ NAV at the beginning*100
Income Ratio:
Income Ratio = Net Investment Income / Net assets for the period
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CHAPTER-2
INDUSTRY PROFILE
The origin of mutual fund industry in India is with the introduction of the concept of mutual
fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year
1987 when non-UTI players entered the industry. In the past decade, Indian mutual fund
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industry had seen a dramatic improvement, both quality wise as well as quantity wise.
Before, the monopoly of the market had seen an ending phase, the Assets under Management
(AUM) was Rs. 67bn. The private sector entry to the fund family rose the AUM to Rs. 470 bn
in March 1993 and till April 2004, it reached the height of 1,540 bn putting the AUM of the
Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI
alone, constitute less than 11% of the total deposits held by the Indian banking industry. The
mutual fund industry is a lot like the film star of the finance business. Though it is perhaps
the smallest segment of the industry, it is also the most glamorous in that it is a young
industry where there are changes in the rules of the game every day, and there are constant
shifts and upheavals. The mutual fund is structured around a fairly simple concept, the
mitigation of risk through the spreading of investments across multiple entities, which is
achieved by the pooling of a number of small investments into a
large bucket. Yet it has been the subject of perhaps the most elaborate and prolonged
regulatory effort in the history of the country.
The main reason of its poor growth is that the mutual fund industry in India is new in the
country. Large sections of Indian investors are yet to be intellectuated with the concept.
Hence, it is the prime responsibility of all mutual fund companies, to market the product
correctly abreast of selling. Mutual funds are an excellent way to invest in stocks, bonds and
other securities. They are a good choice of investment because:
They are managed by professional money managers, so most of the investment research is
done for you. (Most investors dont have the time or know-how to do all the necessary
research.)
You diversify your investment risk by owning shares in a mutual fund, instead of buying
individual stocks or bonds directly.
Transaction costs are often lower than what you would pay if you invested in individual
securities (the mutual fund buys and sells large amounts of securities at time).For those who
are not adept at understanding the stock market, the task of generating superior returns at
similar levels of risk is arduous to say the least. This is where Mutual Funds come
intOpicture.Mutual Funds are essentially investment vehicles where people with similar inves
tment objective come together to pool their money and then invest accordingly. Each unit of
any scheme represents the proportion of pool owned by the unit holder (investor).
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Appreciation or reduction in value of investments is reflected in net asset value (NAV) of the
concerned scheme, which is declared by the fund from time to time. Mutual fund schemes are
managed by respective Asset Management Companies (AMC).Different business groups/
financial institutions/ banks have sponsored these AMCs, either alone or in collaboration with
reputed international firms. Several international funds like Alliance and Templeton are also
operating independently in India. Many more international Mutual Fund giants are expected
to come into Indian markets in the near future.
The Evolution:
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual
funds in India can be broadly divided into four distinct phases
First Phase - 1964-1987
Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs. 6,700 crores of assets under management.
Second Phase - 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004
crores.
Third Phase - 1993-2003 (Entry of Private Sector Funds)
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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.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.
As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805
crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way
ahead of other mutual funds.
Fourth Phase - since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs. 29,835 crores as at the end of January
2003,representing broadly, the assets of US 64 scheme, assured return and certain other
schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come under
the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth.
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Structure of Mutual Fund in India
The Mutual Funds in India are regulated by SEBI MF Regulations, 1996. Under the
regulations mutual fund is formed as a Public Trust under the Indian Trusts Act, 1882. These
regulations stipulate a three tiered structure of entities sponsor (creation), trustees, and
Asset Management Company (fund management) for carrying out different functions of a
mutual fund, but place the primary responsibility on the trustees.
The Fund Sponsor SEBI regulations define Sponsor as any person who either itself or in
association with another body corporate establishes a mutual fund. Sponsor sets up a mutual
fund to earn money by doing fund management through its subsidiary company which acts as
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Investment manager of the fund. Largely, a sponsor can be compared with a promoter of a
company. Sponsors activities include setting up a Public Trust under Indian Trust Act, 1882
(the mutual fund), appointing trustees to manage the trust with the approval of SEBI, creating
an Asset Management Company under Companies Act, 1956 (the Investment Manager) and
getting the trust registered with SEBI.
Trustees The trust is created through a document called the trust deed which is executed by
the fund sponsor in favour of the trustees. Trustees manage the trust and are responsible to the
investors in the mutual funds. They are the primary guardians of the unit-holders funds and
assets. Trustees can be formed in either of the following two ways -Board of Trustees, or a
Trustee Company. The provisions of Indian Trust Act, 1882, govern board of trustees or the
Trustee Company. A trustee company is also subject to provisions of Companies Act, 1956.
Asset Management Company The Asset Management Company (AMC) is the investment
Manager of the Trust. The sponsor, or the trustees is so authorized by the trust deed, appoints
the AMC as the Investment Manager of the trust (Mutual Fund) via an agreement called as
Investment Management Agreement. An asset management company is a company
registered under the Companies Act, 1956. Sponsor creates the asset management company
and this is the entity, which manages the funds of the mutual fund (trust). The mutual fund
pays a small fee to the AMC for management of its fund. The AMC acts under the
supervision of Trustees and is subject to the regulations of SEBI too.
Role of AMC The AMC is an operational arm of the mutual fund .AMC is
responsible for all carrying out all functions related to management of the
assets of the trust. The AMC structures various schemes, launches the scheme
and mobilizes initial amount, manages the funds and give services to the
investors .In fact, AMC is the first major constituent appointed .Later on AMC
solicits the services of other constituents like Registrar, Bankers, Brokers,
Auditors, Lawyers etc and works in close co-ordination with them.
Custodian Though the securities are bought and held in the name of trustees, they are not
kept with them. The responsibility of safe keeping the securities is on the custodian.
Securities, which are in material form, are kept in safe custody of a custodian and securities,
which are in De-Materialized form, are kept with a Depository participant, who acts on the
advice of custodian. Custodian performs a very important back office operation. They ensure
that delivery has been taken of the securities, which are bought, and that they are transferred
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in the name of the mutual fund. They also ensure that funds are paid out when securities are
bought. Custodians keep the investment account of the mutual fund. They collect and account
for the dividends and interest receivables on mutual fund investments. They also keep track
of various corporate actions like bonus issue, rights issue, and stock split; buy back offers,
open offer etc. and act on these as per instructions of the Investment manager.
Other constituents Regulation imposes responsibility on the trustees to ensure that the
AMC has proper system and procedures in place and has appointed key personnel and other
constituents like R&T agents, brokers etc.
Registrar and transfer agent A mutual fund manages money of many unitholders across cities and towns of the country. Investor servicing not only
becomes important but challenging as well. This would typically include
processing investors application, recording the details of investors, sending
them account statements and other reports on periodical basis, processing
dividend payouts, making changes in investor details and keeping investor
records updated by adding details of new investors and by removing details of
investors who withdraw their funds from the mutual funds. It is very
impractical and expensive for any mutual fund to have adequate workforce all
over India for this purpose. Instead, they use entities called as Registrars and
transfer agents, which generally provide services to many mutual funds. This
ensures quality services across all location and keeps the costs lower for the
unit-holders.
Auditor Investor money is held by the trustees in trust. Regulation has ensured proper
accounting norms to ensure fair and responsible record keeping of investors money. Separate
books of account are maintained for each scheme of the mutual fund and individual annual
report is prepared. The books of accounts and the annual reports of the scheme are audited by
auditors. The AMC is a company under companies act, 1956 and therefore is required to get
its accounts audited as per the provisions of the companies act. In order to maintain high
standards of integrity and transparency regulations stipulate that the auditor of the mutual
fund schemes and the auditor of the AMC will have to be different.
Brokers Brokers are registered members of the stock exchange whose services are utilized
by AMCs to buy and sells securities on the stock exchanges. Many brokers also provide the
Investment Manager (AMC) with research reports on the performance of various companies,
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sector and market outlook, investment recommendations etc. Regulations have imposes
restrictions on the involvement of brokers in the investment process of any mutual fund in the
following ways- a. If a broker is related to the sponsor or its associate, then the AMC shall
not purchase or sell securities through that broker in excess of 5% of the aggregate of
purchase and sale of securities made by the mutual fund in all its schemes. b. For transactions
through any other broker the AMC can exceed the limit of 5% provided it has recorded
justification in writing and report of such exceeding has been sent to the trustee on a quarterly
basis.
Current Industry Assessment

The Indian mutual fund industry has shown relatively slow growth in the period FY 10-13
growing at a CAGR of approximately 3.2 per cent. Average (AUM) stood at ~ INR 8,140
billion as of September 2013. However, AUM increased to ~ INR 8,800 billion as of
December 2013. Lacklustre stock market performance, rising inflation and anticipation of a
rise in interest rates has led to a tapering of growth in the Indian mutual fund industry in the
recent years. In comparison to global markets, Indias AUM penetration as a per cent of GDP
is between 5-6 per cent while it is around 77 per cent for the U.S., 40 per cent for Brazil and
31 per cent for South Africa. Despite the relatively low penetration of mutual funds in India,
the market is highly concentrated. Though, there are 44 AMCs operating in the sector,
approximately 80 per cent of the AUM is concentrated with 8 of the leading players in the
market. There have been recent instances of consolidation in the market and market
concentration is expected to remain in the near-term.
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Source: pwc report
Future potential of Mutual Fund

While the long-term outlook for the asset management industry in India seems to be positive,
our stance on short to medium term outlook is moderate. This can be attributed to the existing
performance in financial markets and the evolving market and regulatory landscape. Equity
markets havent performed since the global financial crisis. The broad equity stock index
NSE has grown only by 2 per cent y-o-y and was below the 3 year mark as of Sept 2013. This
was well reflected in the equity AUM growth, which has undergone a negative growth in
AUM base at 10 per cent and 20 per cent over the same time period. The investors have
redeemed their investments and moved to products with stable yields. The performance of
equity markets will continue to reflect in the Equity AUM till the equity markets stabilize.
HNIs have emerged as the fastest growing investor class in the debt oriented products. In
particular, Fixed Maturity Plan (FMPs) continue to remain a popular product and have
consistently given better performance and tax advantage over Bank FDs. Debt oriented
products are slowly gaining recognition among the retail investors. Retail investments
increased from INR 228.3 billion in Sept 2010 to INR 331.6 billion in Sept 2013. But they
still have a long way to go and capture the small ticket market.
There is an opportunity for the mutual fund industry to morph itself into a broader asset
management industry. This will bring in additional investors and flows as the product basket
will offer a holistic array of products with myriad combinations of risk reward, attracting
different classes of investors. An investor then will likely be offered a product that meets his
or her needs at every point in life.
23 | P a g e
CHAPTER -3
COMPANY PROFILE
24 | P a g e
Type
Private
Traded as
NSE: FEDERALBNK
BSE: 500469
LSE: FEDS
Industry
Banking and allied industries
Founded
Kochi, 1945
Headquarters
Federal Towers,
Aluva, Kochi - 683 101,
Kerala, India.
Area served
Republic of India
Key people
Shyam Srinivasan (Managing Director & CEO),

Prof Abraham Koshy (Chairman)
Products
Revenue
Loans, Savings, etc.

69.4 billion (US$1.1 billion) (2014)
The Federal Bank Limited is a major Indian commercial bank in the private sector,
headquartered at Aluva, Kochi, Kerala. It is the fourth largest bank in India in terms of capital
base. As of 29 October 2014, Federal Bank has 1216 branches spread across 24 states and
1449 ATMs across the country. The company provides numerous banking services to
consumers and corporate entities such as Housing Loans, Personal Loan, Car Loan, Life
Insurance, Mutual Funds, Debit Cards, Business Loan, etc. The Bank also has an Express
25 | P a g e
Remittance Facility enabling Non-Resident Indians in the Gulf to carry out a quick transfer of
funds to their accounts.
VISION & MISSION
Vision
Be a "customer-centric" organisation setting standards for customer experience.
Be the trusted' partner of choice for target (SME, Retail, NRI) customers.
Become the numero Uno bank in Kerala and a leading player in our chosen
segments/markets.
Offer innovative yet simple products supported by state-of-the art technology.
Have a dynamic and energised workforce with a strong sense of belonging.
Deliver top tier financial performance and superior value to stakeholders.
Be a role model for corporate governance and social responsibility.
Mission
Devote balanced attention to the interests and expectations of stakeholders, and in particular:
Shareholders: Achieve a consistent annual post-tax return of at least 20% on net worth.
Employees: Develop in every employee a high degree of pride and loyalty in serving the
Bank.
Customers: Meet and even exceed expectations of target customers by delivering
appropriate products and services, employing, as far as feasible, the single-window and 24hour-seven-day-week concepts, leveraging strengthened branch infrastructure, ATMs, and
other alternative distribution channels, cross-selling a range of products and services to meet
customer needs varying over time, and ensuring the highest standards of service at all times.
COMPETITORS:
HDFC Bank
ICICI Bank
Axis Bank
Kotak Mahindra Bank
26 | P a g e
Yes bank
STOCK MARKET PERFORMANCE:

Federal bank
HDFC bank
Axis bank
Kotak Mahindra
Yes bank
12.18%
27.92%
51.76%
bank
54.40%
57.4%
Beta = 1.56
OTHER INCOME: (In Rs.cr)
Federal bank
HDFC bank
Axis bank
Kotak Mahindra Yes bank
693.85
7919.64
7405.22
bank
2028.45
2046.46
SHAREHOLDING PATTERN:
Individuals
Institutions
FIIs
Others
16.43
20.83
42.25
20.49
PRODUCTS& SERVICES OFFERED BY FEDERAL BANK:

PERSONAL BANKING
ACCOUNTS & DEPOSITS
1. Savings Account: Federal Bank has a wide range of Savings accounts with
smart features like Internet Banking, fund transfers, e-statements, online bill
payments to make banking a smoother experience.
2. Freedom SB: Freedom SB is not just a regular savings account. Along with
saving your money, you can get access to a wide variety of services. With
exciting features like International Debit Card, Free account statements and
27 | P a g e
new age banking channels, Freedom SB Account takes the hassle out of
everyday banking.
3. Young Champ: A fully loaded product for the next generation- Young Champ,
an exclusive savings account for children.
4. Fed Excel: An exclusive feature-rich savings account for professionals,
budding entrepreneurs, with no minimum balance requirement.
5. SB Plus: Designed for the dynamic consumer, SB Plus Savings Bank account
has exciting features like Debit Card, new age banking channels and free
monthly Demand Draft issuance.
6. Mahilamitra: International Gold Debit Card, Free Demand Draft, Mobile &
Internet Banking, RTGS/NEFT - because every woman deserves more.
7. Yuvamitra: Endowed with futuristic features like Debit Card, Mobile &
Internet Banking and Fed Book, this account is designed for the students.
8. Fed Smart: The SMART savings account has action packed features like NewAge banking channels, high daily cash withdrawal limits, anywhere banking,
International Debit Card and lot of free services.
9. Basic Savings Bank Deposit Account (BSBDA): With Free ATM card,
monthly statement, and cheque book this account takes care of your simple
banking needs.
10. FISA (Federal Institutional Savings Accounts): High cash withdrawal limits,
free DD, 100 free transactions/ quarter-this account takes care of all your
Institutional Banking needs.
SALARY ACCOUNTS:
1. Fed Classic: A Zero-balance account for salaried individuals with free Debit
Card, AWB and New Age banking Channels.
2. Fed classic premium: A feature rich salary account for high end salary earners,
which comes with a bundle of benefits - no minimum balance requirement,
VISA Gold/Platinum debit card, auto sweep facility, temporary overdraft
facility and much more.
28 | P a g e
DEPOSITS
LOANS:
1. Gold Loan
2. Housing Loan
3. Car Loan
4. Property Loan
5. Other Loans
CARDS:
1. Debit card
2. Credit Card
3. Gift card
4. Travel card
Banking Services:
1. ATM
2. Internet banking
3. Mobile Banking
4. Services
5. Online Services
6. Value Added Services
Insurance & Investments:

1. Life Insurance
2. General Insurance
3. Mutual Funds
29 | P a g e
4. Online Trading
5. New Pension Scheme
NRI
ACCOUNTS & DEPOSITS:
1. NRE Savings Account
2. NRO Savings Account
3. NRE Current Account
4. NRO Current Account
5. Deposits
6. Priority Banking
NRI LOANS:
1. NRI Housing Loans
2. NRI Car Loans
3. NRI Gold Loans
4. NRI Other Loans
SME-Business & Corporate:

1. Current Account
2. Business Loans
3. Business Debit Cards
4. Trade Finance
5. E-commerce
6. Corporate Internet Banking
Agri- Business
30 | P a g e
1. Agri Loans
2. Agri Allied loans
CHAPTER 4
OBJECTIVE OF THE STUDY
31 | P a g e
Primary Objective
A) To study the level of awareness of mutual funds
B) To analyse the perception of investors towards mutual funds.
C) To study the factors considered by the investors and those which ultimately influence
him while investing.
D) Find out the investors behaviour towards Federal Banks Mutual Funds
Secondary Objective
A) Suggest ways to improve the income from mutual fund in Federal Bank
32 | P a g e
CHAPTER 5
PROCESS DESIGN AND METHODOLY
33 | P a g e
A research method refers to the methods the researchers use in performing research
operations. Research Methodology is a way to systematically solve the research problem.
Scope of the study:
The study undertaken does not probe too much about whether the respondents have a
very fine insight into mutual funds. The research involves only a general study related to the
investment attitude of investors towards Federal Bank Mutual Funds.
The study would reveal results regarding the investment attitude of various investors
about Federal bank mutual funds and thus in turn helps the organization to identify the
attitude of various investors and to improve the marketing of mutual funds.
The study is on the attitude of the investors in Federal Bank mutual fund and has also
analysed their satisfaction level from the investors point of view. The research was
conducted with 50 samples and was restricted to the Koramangala branch in Bangalore.
The study has helped to gain real time experience by interacting with the investors
and has helped to analyse The attitude of the investors towards Federal Bank Mutual
Funds. The study will help Federal bank to work on the areas of importance for further
planning and has been done with a motive to learn about the attitude of the investors and help
them gain more knowledge on their investment.
1. Process Design:
The focus of this study was on self-reported decisions made by various customers
regarding the views on investment in mutual funds. Thus it involves Identification of
information needed to solve the problem, Identification of target population and
determination of sampling procedure, Design of procedure
for information collection, Collection of information, Analysis of information and
prediction.
2. Sampling design :
Population It was the customers of federal bank in Koramangala Branch ,
Bangalore.
34 | P a g e
Sampling technique- The sampling technique used is simple random sampling. The
samples were walk-in customers in the random and they were picked randomnly for
the study.
Sample size- The sample size is 50 customers of Federal Bank.
3. Sources of data:
Data were collected through both primary and secondary data sources. Primary data
was collected through questionnaires. The research was done in the form of direct
personal interviews.
a) Primary data: A primary data is a data, which is collected afresh and for the first
time, and thus happen to be original in character. The primary data with the help
of questionnaire were collected from various investors.
b) Secondary data: Secondary data consist of information that already exists have
been collected. Secondary data is collected from company websites, other
websites, etc.
4. Questionnaire Design:
Proper care has been taken to ensure that the information
needed match the objectives, which in turn match the data collected through the
questionnaire. The basic cardinal rules of Questionnaire design like using simple and
clear words, the logical and sequential arrangement of questions has been taken care
of.
5. Statistical tools :
The statistical tool used for this study is simple percentage analysis.
Limitations of the Study:
As the survey was pertaining to investment attitude of investors, biased information
may restrict validity of inference possible.

The raw data was collected with the help of structured questionnaire technique.
Therefore study is bounded by the limitation of this technique.

The study done is restricted to Federal Banks Koramangala branch , Bangalore .
The study had a limited time constraint.
35 | P a g e
CHAPTER 6
DATA ANALYSIS AND INTERPRETATION
36 | P a g e
Q.1
kind of investment you prefer the most?
Bank deposits
Mutual Funds
Shares
Bonds/debentures
56%
24%
10%
10%
28
12
5
5
Investments prefered
Bank deposits
10%
10%
24%
Mutual Funds
56%
Shares
Bonds/debentures
Interpretation:
The data collected reveals that the 56% investors opted bank deposits to be the mode of investment
they prefer following to which 24% opted for mutual funds, 10% for shares and remaining 10% for
bonds and debentures as a mode of investment by the customers in Federal Bank who were
interviewed, as they feel bank deposits are the safest form of investment as the returns are assured
when compared to other forms of investment. Mutual funds are investors second priority for an
investment .
37 | P a g e
Q.2
Do you invest regularly in Mutual funds?
Yes
No
56%
44%
28
22
Interpretation:
As per the investors view, 56% are regular investors in mutual fund and 44% said
they are not a regular investor as they are not aware about mutual funds and the
risk-return associated , so they are hesitant to invest in mutual fund.
Q.3
If no, What is the reason for not investing in mutual fund?
High Risk
Low option
Lack of knowledge
Better bonds in market
30%
26%
40%
4%
Reason for not investing

4%
30%
40%
High Risk
Low option
Lack of knowledge
Bettter bonds in market
26%
Interpretation:
38 | P a g e
15
13
20
2
The customers of the bank were hesitant to invest in mutual fund as 40% lack
knowledge about mutual funds and the safety of investment,30% believe that
mutual funds provided are risky , 26% feels that the banks mutual fund has few
options when compared to other banks mutual fund and the remaining 4% said
that there are better bonds in the market which is a better option than mutual fund.
Regular Investment in mutual fund

Yes
44%
No
56%
Q.4
Frequency of investment?
once a month
once a quarter
once a year
whenever there is enough money
40%
24%
16%
20%
Frequency of investment
20%
40%
16%
24%
once a month
once a quarter
once a year
whenever there is
enough money
Interpretation:
40% investors invest once a month as they feel that investing gives them a sense
39 | P a g e
20
12
8
10
of safety of the principle amount invested , whereas 24% invest once a quarter as
they have lack knowledge about various form of investment on the other hand,
20% invest only when there is money left with them to invest and remaining
16% said that they invest only once a year as they do not prefer to invest much .
Q.5
Objective behind any investment?
Income Generation
Retirement Benefit
Safety of investment principle
others
30%
16%
44%
10%
15
8
22
5
Objective behind investment

10%
30%
44% 16%
Income Generation
Retirement Benefit
Safety of
investment principle
others
Interpretation:
The survey revealed that the objective behind an investors to invest is safety of investment
principle as 44% of the investors believe that safety is there is utmost concern while
investing, whereas 30% said that their objective is income generation as they invest with an
intention to get a good rate of return on the other hand , 16% invest for their retirement
benefit so that they have steady income flow through various investment in order to meet
40 | P a g e
their requirements post-retirement and remaining 10% objectives are different such as to
repay loans , childrens future , etc.
Q.6
Factors preferred while selecting mutual fund scheme?
Return on Investment
Diversification
Liquidity
Savings
26%
20%
30%
24%
Factors prefered
24%
26%
Return on
Investment
Diversification
Liquidity
30%
20%
Savings
Interpretation :
As per the data collected , 30% of the investors prefer liquidity of the
investment as a major factor while selecting any mutual fund scheme whereas
26% prefer return on investment as a factor while selecting the mutual fund
scheme as their objective behind investment remains the same on the other
hand 24% prefer savings while selecting the mutual fund scheme as they
require it for their future growth plans and remaining 20% said the factor is
diversification which they consider when going for selection of mutual fund
41 | P a g e
13
10
15
12
schemes so that there is a good risk-return trade off.

Q.7 Kind of mutual funds scheme preferred the most?
High rish - high return
Low risk-low return
Average risk- Average return
40%
46%
14%
20
23
7
mutual fund schemes prefered

14%
High rish - high

return
40%
46%
Low risk-low return

Average riskAverage return
Interpretation:
As per the data, 46% of the investors prefer a mutual fund scheme which has low risk-return
as their objective was safety of investment principle over a good rate of return, whereas 40%
prefer a high risk-return mutual fund scheme as their objective was to earn higher return on
the amount of invested over safety and remaining 14% prefer average risk-return as their
objective is a steady income flow for their future or retirement benefits.
Q.8 Reason for investing in mutual fund?
Security
opportunity for steady growth
Risk-tolerance
Others
30%
44%
26%
nil
42 | P a g e
15
22
13
0
Interpretation:
When investors were asked the reason behind investing in mutual fund, 44%
said opportunity for steady growth is the main reason as they feel that mutual
fund is less risky and gives good amount of return for the risk taken by the
investor, while 30% said security as their concern for investing in mutual fund
as there is more liquidity and transparency in case of mutual fund investment
and 26% said risk-tolerance as the reason behind investing in mutual fund as its
less risky when compared to equity shares .
Security
Risk-tolerance
26%oppurtunity
30%for steady growth
44%
Q.9
Does Mutual fund give higher return than equity?
Yes
No
70%
30%
35
15
Mutual fund return > equity retu

Yes
30%
No
70%
43 | P a g e
Interpretation:
70% of the investors said that mutual fund gives higher return when compared to equity for
the risk taken by them and the returns are also stable when compared to equity shares , and
remaining 30% said that equity gives higher return than mutual fund as the return solely
depends on the company performance and if they perform very well they get higher return
than mutual funds provide.
Q.10
Tenure preferred while investing in Mutual fund?
short term
long term
46%
54%
23
27
Tenure prefered for investment in mutual fund

short term
54%
46%
long term
Interpretation :
54% of the investors prefer to invest in mutual fund for long term so that they can reap the benefits
of long term investment and remaining 46% prefer short term so as to earn the return sooner and
44 | P a g e
invest in future growth plans.
Q.11 Which banks mutual fund have you invested in?

HDFC Mutual fund
SBI mutual fund
Federal Bank Mutual fund
Others (ING , ICICI,Etc)
20%
10%
30%
40%
20%
5
15
20
10
10%
HDFC Mutual fund
30%
40%
SBI mutual fund

Federal Bank Mutual
fund
Others (ING , ICICI,Etc)
45 | P a g e
Interpretation:
40% of the investors interviewed has invested in Federal banks mutual funds as they feel it gives
good rate of return , Whereas 30% invested in SBI mutual fund as they feel its more safer when
compared to Federal bank on the other 20% have invested in others such as ICICI , ING.etc and
the remaining 10% have invested in HDFC mutual fund due to the awareness created by them
regarding mutual fund and educating them regarding the same when they go to the bank .
Q.12
Are you aware about federal banks mutual funds?
Yes
70%
35
No
30%
15
Awareness about federal banks mutual fund

Yes
no
30%
70%
Interpretation:
70% of the investors were aware about Federal banks mutual fund while 30% were not aware about
Federal banks as they have not taken the initiating of creating an awareness among the mutual fund
schemes provided by them .
46 | P a g e
CHAPTER 7
47 | P a g e
FINDINGS & RECOMMENDATIONS
1. Investors first preference is bank deposits and mutual fund is the second preference
as it just constitutes 24% when compared to bank deposits i.e. 56%. Indicating that
mutual funds advantages and awareness should be created more to increase the
preference from bank deposits to mutual fund as an investment option for investors.
2. Investors objective behind an investment who regularly invest in mutual fund
i.e.56% is majorly safety of investment principle and income generation which
constitutes 44% and 30% respectively. Indicates that Federal bank should ensure
48 | P a g e
safety as well as good rate of return in their mutual fund schemes to attract more
investors towards their mutual fund.
3. Investors who doesnt invest in mutual fund i.e.44% is not investing as there is lack of
awareness created amongst the investors regarding the various mutual fund schemes
and they feel its risky to invest in the same .
4. Investors prefer a mutual fund scheme which gives them liquidity provision as well as
good return on investment as it constitutes 30% and 26% respectively and they prefer
a long-term mutual fund schemes over short-term schemes as they want to reap the
benefits of long-term investment.
5. The reason behind choosing mutual fund has been majorly due to the advantage of
mutual fund providing opportunity for steady growth i.e.44% and security i.e. 30%
when compared to other investment options, since mutual fund is a safe form of
investment with expert advice as well as transparency.
6. Investors prefer mutual fund schemes which is high risk- high return as the investors
are ready to take up risk if they get the return in proportion or higher to the risk taken.
Indicates that Federal bank should provide a mutual fund scheme of high risk-return
as it will help them in generating more revenue from the same.
7. SBI Mutual fund and ICICI ,etc is a competition for Federal banks mutual fund as the
investors have invested in them as well to an extent of 30% . Therefore, Federal bank
should ensure there is more options provided to the investors as well as there is
awareness created amongst the investors.
8. Investors had awareness of Federal banks mutual fund to an extent of 70% but only
44% thought the mutual schemes provided were sufficient but they are all interested
to invest in the fund due to the brand image that they have about the banks as they
have been existing customers of the bank.
9. Investors who werent aware of federal bank mutual fund was 30% out of which 20%
werent interested in investing in mutual funds provided by them as they said the
schemes and options provided to them were not sufficient when compared to other
banks and majorly because they said that there was no awareness regarding federal
banks mutual fund schemes and benefits.
49 | P a g e
10. Investors gets awareness about mutual fund in the market through
television/advertisements majorly i.e.36% of them said that, while other major source
was through print medias constituting 30%.
RECOMMENDATIONS:
1. Federal bank should create more awareness through marketing department i.e.
having a separate personnel at the branches to educate them regarding the various
mutual fund schemes provided and their advantages so that attract more investors
and generate more revenue through the sale of mutual fund as well as advertise in
print medias in order to generate more awareness .
2. Federal bank should increase the options provided in their mutual fund scheme in
order to retain as well as obtain new investors whereby they can increase their
bottom line profit.
3. Federal bank should create mutual fund schemes which as high risk-return
portfolios as well as low risk-return so as to gain more investors and also they
should provide more long-term schemes which has more liquidity provisions and
diversification in order to attain the objective of the investors which will help the
bank in gaining more mutual fund investors and
4. Federal bank should try to have some competitive advantage over its competitors
such as SBI, ICICI, etc. which are emerging in mutual fund by providing schemes
as per the investors objectives and goals and having a kiosk in all the branches to
promote as well as learn more requirements of the customers whereby they can
increase their other income (fee income) which will help in increasing their overall
profitability.
50 | P a g e
CHAPTER -8
51 | P a g e
LEARNINGS
Concepts of mutual fund :
This study has helped in getting more clarity and knowledge regarding the concepts, types
and the evolution of mutual fund industry as a whole. From this study, I have got insights into
various types of mutual funds and the working of mutual fund.
Investors perspective regarding mutual fund:
This study has helped in gaining different perspective regarding mutual fund from the
investors point of view such as, risk, liquidity, diversification, opportunity for steady growth,
etc . Investors view changes depending upon their knowledge regarding mutual fund and
objective behind their investment in mutual fund.
Efficiency of Federal banks mutual fund:
This study has helped in understanding and learning about the efficiency of mutual fund
provided by Federal bank which could be understood after interacting with the existing
52 | P a g e
investors ,indicated that the options were less as well as there were no awareness regarding
their mutual fund in the bank .
Factors considered while selecting an investment by an investor:
After doing this study, it helped me in getting insight on the factors that are consider by an
investor before choosing any investment option such as diversification, retirement benefits,
income generation, safety, etc. and how these factors change with various investment
objective considered by an investor.
Advantages of investing in mutual fund:
During the study, I had learnt about the various advantages that mutual fund investment
possess over equity shares and how beneficial and secure it to any investor.
Awareness of mutual fund provided by Federal bank:
After the study, it helped me in realising Federal banks mutual fund schemes provided and
how well aware are investors about its existence and how the mutual fund schemes are better
over its competitors and how well Federal bank is able to reach to its investors with their
existing mutual fund schemes.
How Federal banks other income is when compared to its competitors
After looking at their financials, it was clear that Federal banks mutual fund income
which is included in its other income, is low when compared to its competitors such as
HDFC, Kotak, Axis, etc. as they are not promoting much mutual fund schemes in their
branches and there is lack of awareness amongst the investors regarding the same.
53 | P a g e
Bibliography
www.federalbank.co.in
www.moneycontrol.com
www.profit.ndtv.com
www.crisil.com
www.business-standard.com
www.wikipedia.com
www.investopedia.com
www.inreuters.com
www.kpmg.com
54 | P a g e
55 | P a g e

Internship Report - Federal Bank

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A study of Mutual fund investor behaviour in

Objectives of the study

Project / Process Design and Methodology

Data Analysis / Process Study

Findings from the study

References, Bibliography and Appendices

plans and dividend reinvestment plans enabling systematic investment or withdrawal of

Based on the maturity period

Diversified equity funds

Small and mid-cap equity

Franklin India high growth

Institute of Management, Christ University

SBI Blue chip fund

ICICI Prudential exports and

Principle emerging blue-chip

Tata equity opportunities fund

Other services fund

Birla sun life top 100 fund

Birla sun life MNC fund

SBI Magnum gilt fund- long

Franklin India balance fund

HDFC Index fund

HDFC balanced fund

How to calculate mutual fund performance

Structure of Mutual Fund in India

Current Industry Assessment

Source: pwc report

Future potential of Mutual Fund

Banking and allied industries

Shyam Srinivasan (Managing Director & CEO),

Loans, Savings, etc.

Be a "customer-centric" organisation setting standards for customer experience.

Offer innovative yet simple products supported by state-of-the art technology.

Have a dynamic and energised workforce with a strong sense of belonging.

Deliver top tier financial performance and superior value to stakeholders.

Be a role model for corporate governance and social responsibility.

Institute of Management, Christ University

STOCK MARKET PERFORMANCE:

Kotak Mahindra Yes bank

PRODUCTS& SERVICES OFFERED BY FEDERAL BANK:

ACCOUNTS & DEPOSITS

Institute of Management, Christ University

Insurance & Investments:

Institute of Management, Christ University

SME-Business & Corporate:

Proper care has been taken to ensure that the information

As the survey was pertaining to investment attitude of investors, biased information

may restrict validity of inference possible.

Therefore study is bounded by the limitation of this technique.

kind of investment you prefer the most?

Reason for not investing

Regular Investment in mutual fund

Objective behind investment

schemes so that there is a good risk-return trade off.

mutual fund schemes prefered

High rish - high

Low risk-low return

Mutual fund return > equity retu

Tenure prefered for investment in mutual fund

invest in future growth plans.

Q.11 Which banks mutual fund have you invested in?

SBI mutual fund