company profile ing

8/9/2019 Company Profile ING

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COMPANY PROFILE

"Building a customer centric culture in our business is critical - whatever we do we must start by

looking at it from the customer point of view Vaughn Richtor, MD & CEO, ING Vysya Bank Ltd.

ING Vysya Bank Ltd., an entity formed with the coming together of erstwhile The Vysya Bank Ltd., a

premier Indian Private Sector Bank and ING, the global financial powerhouse of Dutch origin and the

world's largest financial services group (Fortune 500).

Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV. On the other

hand, ING group originated in 1990 from the merger between Nationale Combining roots and

ambitions, the newly formed company called Internationale Nederlanden Group. Market circles soon

abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING

Group N.V.

The bank with its outlets across India offers the entire range of financial products and services in an

online environment. It has over 76 years of market standing, a net worth of Rs.1076 crores and a

capital adequacy of 11.36%, as of September 2006.

ING, the global financial services giant on the other hand has an asset base of 1159 billion euros, with

a net profit of 7.21 billion euros, as of December 2005. The presence of the group extends beyond 50

countries, serving over 60 million clients, with a strong and committed employee force of 115,000.

ING Private Banking is a global network of over 2000 private banking professionals, managing over

500 billion euros for our clients in 15 countries. Private Banking in India started in 1994 as a part of

the ING Group N.V. Since inception, our offer has been in-line with our international credo -

relationship oriented, long term and advisory driven. We were among the first few banks to introduce

Private Banking in India and currently we manage assets for around 400 families.

COMPANY OVERVIEW

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a

premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin,

during Oct 2002.

The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team of

visionaries came together to found a bank that would extend a helping hand to those who weren't

privileged enough to enjoy banking services.

It's been a long journey since then and the Bank has grown in size and stature to encompass every

area of present-day banking activity and has carved a distinct identity of being India's Premier Private

Sector Bank.

In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid

strides to reach the coveted position of being the number one private sector bank. In 1990, the bank

completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then Finance Minister

Prof. Madhu Dandavate, had termed the performance of the bank Stupendous. The 75th anniversary,

the Platinum Jubilee of the bank was celebrated during 2005.

MISSION

ING mission is to be a leading, global, client-focused, innovative and low-cost provider of financial

services through the distribution channels of the clients preference in markets where ING can create


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value.

The long journey of seventy-five years has had several milestones

1930 Set up in Bangalore

1948 Scheduled Bank

1985 Largest Private Sector Bank

1987 The Vysya Bank Leasing Ltd. Commenced

1988 Pioneered the concept of Co branding of Credit Cards

1990 Promoted Vysya Bank Housing Finance Ltd.

1992 Deposits cross Rs.1000 crores

1993 Number of Branches crossed 300

1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export

Promotion Council for excellent performance in Export Promotion

1998 Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR

Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance

(International Financial Journal - June 1998)

2000 State -of - the -art Date Centre at ITPL, Bangalore.

RBI clears setting up of ING Vysya Life Insurance Company

2001 ING-Vysya commenced life insurance business.

2002 The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan

schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account

that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card

and the mi-b@nk net banking service.

2002 ING takes over the Management of the Bank from October 7th , 2002

2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their

letter of 17.12.02

2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home

Loans

2004 Introduced Protected Home Loans - a housing loan product

2005 Introduced Solo - My Own Account for youth and Customer Service Line Phone Banking

Service


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The growth and development of Indian Mutual Fund Industry can be broadly divided into four 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 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)

Highlight of phase was entry of Public Sector Funds. In 1987 marked the entry of non- UTI, public

sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) in

June 1989 and General Insurance Corporation of India (GIC) In Dec. 1990.

Public Sector Bank also established their own Mutual Funds: -

SBI Mutual Fund (June 1987)

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).

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

Third Phase (1993 2003)

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 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

Fund Regulations, and with recent mergers taking place among different private sector funds, the

mutual fund industry has entered its current phase of consolidation and growth. As at the end of

September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421


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schemes.

INTRODUCTION

In todays financial market there are various investment instruments like equity shares, preference

shares that give varying returns and also bear high risk. Similarly we have fixed income investment

instruments like Bonds, Debentures, Fixed deposits which is less risky. In last 42 years a new

investment product was developed called Mutual Fund.Mutual Fund

A Mutual Fund is common pool of money into which investors place their contribution that is to be

invested in accordance with a stated objective. The ownership of the fund is thus joint or Mutual, the

fund belongs to all investors. He or her bears in the same proportion as the amount of the contribution

make a single investors ownership of the fund to the total amount of the fund.

A mutual fund uses the money collected from investors t buy those assets which are specifically

permitted by its stated investment objectives.

A 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 realized is 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.

ORGANISATION OF A MUTUAL FUND

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

mutual fund:

CLASSIFICATION OF MUTUAL FUNDS

There are different types of mutual funds to cater for different investors needs, whatever the age, and

financial position, risk tolerance and return expectations. The Mutual fund schemes can be classified

by their investment objective like income, growth, tax saving etc as well as number of units (if

unlimited open Mutual funds can be classified as following:

Mutual Funds can be divided on the basis of maturity.

1) Open Ended Schemes

These schemes are characterized by the fact that they are available for subscription throughout the

year i.e. they do not have a fixed maturity period. Investors can buy or sell the units of these schemes

at the prices based on Net Asset Value of the fund from and to the mutual fund on any business day.

These stocks are generally not listed on stock exchange.

Open-ended schemes are preferred for liquidity. Such funds can issue and redeem during the lifetime

of the scheme. Hence, the unit capital of open-ended schemes fluctuates on daily basis.


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2) Close ended schemes

Close-ended schemes have fixed maturity period. Investors can buy these during the period when

they are open for initial public offering (IPO). After these they cannot issue except bonus or rights

issue. However we can buy or sell these units of the scheme on the stock exchange where they have

being listed. The maturity period of these schemes usually varies between 3 to 15 years.

Mutual funds can be classified with reference to the type of instrument in which money has to be

deposited as per the requirements of the investors.

The various types are as follows:

1)EQUITY FUNDS

Equity funds are for those are ready to take high risk for high returns. These funds invest in the stocks

of diversified list of industries. Such funds invest in shares with potential of growth and capital

appreciation. They invest in well-established companies where the company itself and industry are

thought to have good long term potential.

These are classified further into growth and dividend option.Growth Option generally aims to provide capital appreciation over medium to long-term higher risks

only in equities, which are expected to give higher returns.

Dividend Option generally distributes the income and profits realized by the way of dividend.

Equity funds can be of the type-diversified funds, sector funds, index funds or tax saving funds.

Diversified Funds

Diversified funds choose to invest in number of sectors at the same time.

Sector Funds

Sector funds choose to invest in one or more chosen sectors of the equity markets. These sectors

could vary depending on the investors preference and risk-return attributes of the sector. These funds

invest in securities of specific industry or sector of the economy such as Health Care, Technology,

Leisure, Utilities or precious metals. The fund enables the investor to diversify holdings among many

companies within an industry, a more conservative approach than investing in one company. The

sector funds offer the opportunity for sharp capital gains in certain cases.

Index Funds

These generally buy shares in all the companies composing the BSE Sensex or NSE Nifty or any other

broad stock market indices. These schemes invest in the securities in the same weightage comprising

of the 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. These are not suitable for investors who must conserve

their principal or maximize their current income.

Tax Saving Funds

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.


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2)DEBT FUNDS

INCOME FUND

These schemes are targeted at risk averse people. They look toward to provide current consistent

income with preservation of capital. These funds invest in short term as well as long-term debtinstruments. The short-term debt instruments include call money lending, commercial papers,

certificate of deposit and treasury bills. The long-term debt instruments include bond issued by central

and state government, public sector organizations, public financial institutions, and private sector

companies. The fixed income category funds vary greatly in their stability of principal and their

dividends.

Bond Funds

Bond funds provide fixed return that desire safety. The savings of the investors are invested in various

kinds of bonds in which investment objectives are safety. Bond funds are more liquid diversified and

conservative investments with modest capita gains. Prices of Bonds changes with the changing

interest rates.

Gilts Funds

A Gilt fund invests only in securities that are issued by the government and therefore does not carry

any credit risk. These funds invest in long and short term securities issues by the government. These

funds are preferred by institutional who have to invest only in government paper.

Money Market funds

For the cautions investors, these funds provide high stability of principal while seeking moderate to

high current income. They invest in highly liquid; virtually risk free, short-term debt securities of the

agencies of the Indian government, banks & corporations and treasury bills. Because of their short-term investments money market funds usually have constant unit price, only the yield fluctuates.

Money market funds are used in short-term liquid assets like Certificate of deposit (CDs), Treasury

bills and Commercial papers.

Balanced Funds

These schemes are meant for the risk neutral investors. They provide both for growth and income.

Balanced funds invest both in equity and debt instruments as indicated in the offer document. The

downside of these funds is that you may not see your capital appreciating at the same pace as the

Sensex. But in the depreciating market you may not be disappointed with the returns.

ADVANTAGES OF MUTUAL FUNDS

1.PROFESSIONAL MANAGEMENT

Use of Mutual funds brings about professional management of funds. Good fund managers with

excellent research team can do better job of monitoring the portfolio.

2.DIVERSIFICATION


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Mutual funds invest in broad range of securities. This limits the investment risk by reducing the effect

of possible decline in the value of any one security. One of the important reasons to invest in mutual

funds in that the risk is spread over number of stocks.

3.LIQUIDITY

In the open-ended scheme we can get redeem and receive payment within three days. In the close-

ended scheme, the units can be sold at the stock exchange at prevailing market price.

4.CONVENIENCES AND FLEXIBILITY

Investing in Mutual funds has large amount of convenience. While we own just one security rather

than many and still enjoy benefits of diversified portfolio and wide range of services. Fund managers

decide the securities to trade in, collect the interest payments and see that the dividend on portfolio

investments are dully received and rights exercised. Another big advantage is that we can move the

funds easily form one fund to another in the mutual fund family. This also allows you to easily

rebalance your portfolio (to respond to economic changes and significant fund management). With the

regular investment plans, regular withdrawal plans and dividend reinvestment plans. You can

systematically invest or withdraw the funds as per your needs and convenience.

5.WELL REGULATED

All mutual funds are registered with SEBI and they function within the provisions of strict regulations

designed to protect the interest of the investor. The operations of mutual funds are regularly

monitored by SEBI. All the acts are thus answerable to Securities Exchange Board of the (SEBI)

6.AFFORDABILITY & NUMBER OF SCHEMES

Individuals may lack sufficient amount of funds to invest in high valued stocks, but mutual fund

industry have large corpus to invest in diversified stocks.

RISKS INVOLVED IN MUTUAL FUNDS

After understanding the basics of mutual funds an investor can build a portfolio. But before building a

portfolio it is necessary to understand various other elements that affect the potential value of the

investment over the years. The basic thing to be kept in mind is that, when you invest in mutual fund

there is no guarantee that you will end up with more money when you withdraw your investment than

what you started out with. That is the potential of loss is always there. The loss in the value of your

investment is what considered as risk in investment.

Risk associated with investing in Fixed Income, Monthly Income Plans and Money Market Funds:

Interest Rate Risk:

As with all debt securities, charges in interest rates will affect Schemes Net Asset Value as the prices

of securities generally increase as interest rates decline and generally decrease as interest rates rise.

Prices of longer-term securities generally fluctuate more in response to interest rate changes than do

shorter-term securities. Interest rate movements in the Indian debt markets up or down in debt and

money market securities and thereby to possible large movements in the NAV.

Liquidity or Marketability Risk:


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This refers to the ease with which a security can be sold at or near its true value. The primary

measure of liquidity risk is the spread between the bid price and the offer price quoted by dealer.

Liquidity risk is characteristics of the Indian fixed income market.

Credit Risk:

Credit risk or default risk refers to the risk that an issuer of a fixed income security may default (i.e.,will be unable to make timely principal and interest payments on the security). Because of this risk

debentures are sold at a yield spread above those offered on Treasury Securities, which are sovereign

obligations and generally considered to be free of credit risk. Normally, the value of a fixed income

security will fluctuate depending upon the actual changes in the perceived level of credit risk as well as

the actual event of default.

Reinvestment Risk:

This risk refers to the interest rate levels at which cash flows received from the securities in the

Scheme or from maturities in the Scheme are reinvested. The additional income from reinvestment is

the interest on interest component. The risk is that the rate at which interim cash flow can be

reinvested will fall

Other types of risk are as follows:

Change in tax rates / structure

Government regulation

Political uncertainty

Exchange rates risk

PRODUCT PROFILE

Products offered by the ING VYSYA Asset Management Company:-

1.ING Select Stocks Fund

It is an open ended growth fund. The inception date of the fund is March 30th 1999.

Investment objective: - the primary objective of the scheme is to generate capital appreciation

through investment in equity and equity related securities in core sectors.

2.ING Tax Savings Fund

It is an open ended equity linked savings scheme started in February 12th 2004.

Investment objective: - To provide medium to long term growth of capital along with income tax

rebate .Investments in this scheme will be in locked in for a period of 3 years from he date of the

allotment.

3.ING Nifty Plus Fund

It is an open ended index linked equity scheme started in January 12th 2004.

Investment objective: - Its objective to invest in companies whose securities is included in the S&P


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CNX Nifty Index.

4.ING Balanced Fund

It is an open ended balanced scheme started in March 15th 2000.

Investment objective: - The primary objective of the scheme is to generate long term growth ofcapital appreciation and current income from a portfolio of equity and fixed income securities, 65% is

invested into equity and 35% being invested in fixed income securities, money market instruments.

5.ING Domestic Opportunities Fund

It is an open ended equity scheme started in July 30th, 2004.

Investment objective: - To seek to provide long term capital appreciation from a portfolio that is

primarily invested in companies which derive a significant proportion from the domestic Indian market

economy.

6.ING Mid Cap

It is an open ended equity scheme started in April 19th, 2005.

Investment objective: -Seeking to provide long term growth of capital at controlled level of risk by

investing primarily in Mid Cap stocks. The level of risk is higher than a fund focused on large and liquid

stocks.

7.ING Dividend Yield Fund

It is an open ended equity scheme started in September 9th, 2005.

Investment objective: - The primary objective of the scheme is to generate long term capital

appreciation or dividend distribution through investment in equity and equity related securities in core

sectors.

8.ING L.I.O.N Fund (Large Cap, Intermediate Cap, opportunities,

New Offerings)

It is an open ended diversified equity scheme started in November 18th, 2005.

Investment objective: - To seek to provide medium to long term capital appreciation from a portfolio

that is primarily invested in stocks across the entire market specialization range.

9.ING A.T.M (Against The Market) Fund

It is an open ended diversified equity scheme started in January 27th, 2006.

Investment objective: -The primary objective of the scheme is to gain


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capital appreciation through investment in equity and equity related instruments by investing in the

stocks of companies, which are fundamentally sound but are undervalued.

10.ING Liquid Fund

It is an open ended liquid income scheme started in December 28th, 1999.

Investment objective: -The primary objective of the scheme is to provide reasonable returns while

providing a high level of liquidity and low risk by investing primarily in money market and debt

securities.

11.ING Global Real Estate Fund

It is an open ended fund of fund scheme started in November 20th, 2007.

Investment objective: -The primary objective of the scheme is to gaincapital appreciation through investment in ING Global Real Estate Fund.

the scheme also invests in the units of other similar overseas mutual fund schemes and also in the

money market securities.

Portfolio Management Services

ABSOLUTE RETURN PORTFOLIO

Investment Objective

The ING Mutual Fund PMS Absolute return portfolio endeavors to deliver positive absolute returns with

lower volatility across all market conditions by investing in a combination of buy and sale positions.

Suitability

The Absolute Return Portfolio may be considered suitable for investors with a medium or high risk

appetite and an investment horizon of 18 to 24 months

AGGRESSIVE PORTFOLIO

Investment objective

The Aggressive Portfolio is a diversified equity portfolio that endeavors to achieve long term growth

through capital appreciation.

Suitability

The portfolio is suitable for investors with a medium to high risk appetite and an invest horizon of

above twelve to eighteen months.

ALPHA PORTFOLIO


The Alpha Portfolio seeks to capture Alpha which is out performance to the index on the clients

portfolio.


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Suitability

The Alpha Portfolio is suitable for investors with a low to medium risk profile and an investment

horizon of more than 12 months.

ARBITRAGE PORTFOLIO


To endeavor to earn attractive risk adjusted returns on capital invested by taking advantage of

spreads between the price of a stock future and the underlying stock.

Suitability

The product may be considered suitable for investors with investments in relatively low risk assets

who are looking for an alternative to potentially increase their returns.

DEEP VALUE PORTFOLIO


The Deep Value Portfolio endeavors to generate capital gains over the long term, by investing in a

diversified portfolio of significantly undervalued stocks.

Suitability

The Deep Value Portfolio may be considered suitable for investors with a medium to high risk appetite

and an investment horizon of above 12 to 18 months.

DIVIDEND YIELD PORTFOLIO


The Dividend Yield Portfolio endeavors to generate superior risk adjusted returns through a

combination of dividend income and capital appreciation

Suitability

This portfolio may be considered appropriate for investors with a relatively low risk appetite, who wish

to earn potentially higher returns offered through the equity market. It is also suitable for the

investors looking for tax efficient investment options that offer the scope for higher returns.

FOCUSSED PORTFOLIO


The Focused Portfolio endeavors to generate capital appreciation by bottom up stock picking and

taking concentrated position investment stocks and sectors.

Suitability of the Product


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The focused portfolio may be considered suitable for investors with a relatively high risk appetite and

an investment horizon of 18 to 24 months.

ONLY OPTIONS PORTFOLIO

Investment Objectives

The Only Options Portfolio endeavors to achieve significant appreciation in capital by investing in a

portfolio of stock and index options.

Suitability

The portfolio may be considered suitable:

For the investors with a very high risk appetite who desire significant appreciation in their capital

and are willing to take on significant levels of the risk for the same

As a potential portfolio return enhancer for clients with large investment in low risk fixed income

assets.

RESEARCH OBJECTIVES

PRIMARY OBJECTIVE

The primary objective is to make a comparison between different mutual fund schemes of various

Asset Management Companies in terms of their returns and feedback given by the investors.

SECONDARY OBJECTIVES

? To identify various potential investment options with Mutual Funds.

? To know the brand image of ING VYSYA Asset Management Company.

? Conduct a Questionnaire survey for identification of prospects for ING

VYSYA mutual fund.

? To study the history, present and future of Mutual Fund.

RESEARCH METHODOLOY

Each financial company is in great need of the market review of their plans, funds and services in

order to make the new strategies and to implement and modify them from time to time. Therefore

firms are increasing the expenditure on marketing research. Research form the basis for developing a

new plan, to know the reasons for the decline in sales, and to know about the competitors etc.

It includes the description of the sample selected, sample unit, sample size, sampling technique,

methods of the collecting information, statistical analysis and also point out limitations of present

study.


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The selected sample may or may not be considered as a true representative of the whole population.

DATA ANALYSIS AND INTERPRETATION

Returns in Predominantly Large Cap Fund

Funds Prudential TATA Pure Reliance Kotak ING

Duration ICICI Equity Vision 30 L.I.O.N

Power Fund Fund Fund

Last 1 Year 55.87% 49.34% 49.52% 59.7% 59.34%

Last 3 Years 54.29% 58.44% 48.48% 55.9% 46.05

Last 5 Years 41.88% 37.52% 25% 37.6% 46.26

Since Inception 16.75% 33.84% 11.82% 30.5% 50.96

In predominantly large cap funds the mutual fund plans invest most of the money in large cap

companies. The growth of large cap companies is consistent and regular.

In this category the Kotak 30 is the dominating fund followed by the ING L.I.O.N. If we compare the

return since inception Reliance Vision Fund is giving the least return.

Funds Prudential Reliance Kotak ING

Duration Emerging Growth MidCap MidCap

Star

Last 1 Year 53.66% 66.52% 37.9% 76.38Last 3 Years -- 85.8% -- 45.53

Last 5 Years -- 59.53% -- 55.75

Since Inception 54.82% 33.7% 34.5% 53.63

In this category the investment of the scheme is goes to Mid Cap companies. In this category scheme

invest in the growing mid cap companies. Both growth and decline in these mid cap companies.

In this category ING Mid Cap has given the maximum return in last one year followed by Reliance

Growth Fund.

Returns in Tax Saving Funds

Funds Prudential TATA Reliance Kotak ING

Duration ICICI

Last 1 Year 36.32% 28.57% -- -- 76.38

Last 3 Years 64.35% 51.41% -- -- 45.53

Last 5 Years 47.64% 37.07% -- -- 55.75

Since Inception 33.6% 26.75% 23.77% 4.5% 48.18


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In tax saving fund the investment from people is done to get tax benefit.

These funds have a minimum lock in period of 3 years. ING Tax Saver is giving the maximum return

and PruICICI Tax plan is at second place in terms of returns.

Reliance Tax Saver Fund and Kotak Tax Saver have been just started and the least return is given by

Kotak.

Returns in Multi Cap Funds

Funds Prudential TATA Reliance Kotak ING

Duration ICICI Growth Equity opportunities Balanced

Dynamic opportunities

Last 1 Year 61.47% 25.95% 65.71% 54.1% 36.56Last 3 Years 54.52% 49.29% -- -- 28.24

Last 5 Years -- 34.34% -- -- 26.77

Since Inception 52.86% 9.13% 58.37% 57.1% N/A

The scheme is mainly invest in a diversified portfolio of Mid Cap & Large Cap companies. In this

category PruICICI is the best performing fund. The second best performing fund is Reliance.

PruICICI is performing well in this fund since its inception and giving very good returns to the

investors.

Returns in Sectoral Fund

Funds

Duration PruICICI Technology Fund TATA

Life Sciences And Technology Fund Kotak

Tech

Fund ING

Dividend

Yield

Fund

Last 1 Year 25% 38.77% 23.4% 59.34

Last 3 Years 48.21% 51.19% 41.4% 46.05

Last 5 Years 24.57% 33.92% 20.1% 46.26

Since Inception 24.57% 22.03% -4.2% 56.53

These are the sectoral funds invest in a particular sector with a objective of generating long term

capital appreciation by investing equity and equity related securities.

ING Dividend Yield fund is doing extremely well in this scheme.


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Systematic Investment Plan (SIP)

Predominantly Large Cap Funds

Funds

PruICICI Power TATA Pure Equity Fund Reliance Vision Fund ING

L.I.O.N

Fund

SIP Available Available Available Available

Min. Investment Rs.1000 Rs.1000 Rs.500 Rs.1000

Returns in Last 1 Year 24.98% 12.95% 32.78% 59.34

Returns in Last 3 Years 44.67% 41.51% 48.71% 46.05


Returns Since Inception 25.78% 33.66% 35.49% 50.96

Returns are on the basis of min. Rs. 1000 invested for 12 months that is Rs. 12000 invested in a year.

Predominantly Mid Cap fund

Funds

PruICICI Emerging Star Kotak Mid-Cap Reliance Growth

Fund ING

Mid Cap

FundSIP Available Available Available Available



Returns in Last 3 Years -- - 66.88% 45.53

Returns in Last 5 Years -- - 69.88% 55.75

Returns Since Inception 42.42% - 40.59% 53.63


Tax Saving Funds (ELSS)

Funds

Pru

Tax

Fund TATA

Tax Saving

Fund Reliance

Tax


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Saver

Fund Kotak

Tax

Fund ING

Tax

Saving

FundSIP Available Available Available Available Available

Min. Investment Rs.500 Rs.500 Rs.500 Rs.1000 Rs. 1000

Last 1 Year -1.13% 23.64% - -27.96% 76.38

Last 3 Years 50.09% 41.73% - -- 45.53

Last 5 Years 55.76% 42.37% - -- 55.75

Since Inception 41.33% 30.96% - -- 48.18


Multi Cap FundsFunds

Pru

Dynamic

plan TATA

Growth

Fund Reliance

Equity

Opportun-ities

Fund Kotak

Opportun-ities Fund ING

DomesticOpportu-nities

Fund

SIP Available Available Available Available Available

Min. Investment Rs.1000 Rs.1000 Rs.500 Rs.1000 Rs. 1000

Last 1 Year 26.82% -- - 28.09% 59.34

Last 3 Years 49.99% -- - -- 46.05

Last 5 Years -- --. - -- 46.26

Since Inception 52.36% -- - -- 50.76


Index Funds

Funds

PruICICI Index

Fund Reliance


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Index

Fund HDFC

Index

Fund ING

Nifty

Plus



Returns in Last 1 Year 28.83% - - 54.40

Returns in Last 3 Years 36.19% - - 43.43

Returns in Last 5 Years -- - - 41.18

Returns Since Inception 35.8% - - 37.31


Balanced Fund

Funds

PruICICI Balanced

Fund TATA

Balanced

Fund HDFC

Balanced

Fund ING

Balanced






Returns Since Inception 25.66% 21.43% -- N/A


DEMOGRAPHIC ANALYSIS

AGE GROUP OF RESPONDENTS

DATA TABLE

AGE GROUP NUMBER OF SAMPLES

20-30 Years 89

31-40 Years 76

41-50 Years 90

51-60 Years 54

Above 60 Years 45


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TOTAL NO. OF SAMPLES 354

INCOME GROUP OF RESPONDENTS

DATA TABLE

MONTHLY INCOME IN Rs. NUMBER OF SAMPLES

10,000-15,000 6515,000-20,000 60

20,000-25,000 70

25,000-30,000 65

30,000-35,000 30

35,000-40,000 40

Above 40,000 24

TOTAL SAMPLE SIZE 354

PROFESSION OF THE RESPONDENTS

Business 115

Service 90

Student 100

Others 49

Total Sample Size 354

Question 1. What are your preferred investment priorities?

Explanation: - The main reason behind the selection of this question is to find out the inclination of the

individuals towards various investment options available so we can easily come to know the inclination

of the people towards mutual fund.

DATA TABLE


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GRAPHICAL REPRESENTATION

ANALYSIS

? From the data that is collected it can very easily be make out that 56% of the respondents are

having mutual funds

? This gives us a general idea that in the educated class most of the people are inclined towards

mutual funds.

Question 5. Have you invested in mutual fund of which company?

Reason: This question was simply selected to know the share of the various Asset Management

Companies in the market.

DATA TABLE

ASSET MANAGEMENT COMPANY NUMBER OF RESPONDENTS

PRUDENTIAL ICICI 100

RELIANCE 120

HDFC 80TATA 50

KOTAK 100

ING VYSYA 20



ANALYSIS

? Out of the 470 people, Prudential ICICI accounts for around 21.5%, Reliance accounts for 26%,

followed by KOTAK that accounts for around 21.5%.

? The share of ING VYSYA is only 4.21% which is very low compare to other Asset Management

Companies the reason is that they are much focus on their insurance plans rather than mutual fund

Question 6. What is your perception about MUTUAL FUNDS Plans over ULIP Plans?


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various policyholders of the ING VYSYA. This is to reveal the status of the various services that are

provided by the ING VYSYA.

DATA TABLE

SATISFACTION LEVEL NUMBER OF RESPONDENTS

FULLY SATISFIED 53

SATISFIED 101NOT SATISFIED 200



ANALYSIS

? The main reason behind including this question is to come to know the real market value of the INGVYSYA among the customers because to analyze where this bank is lacking.

? On analysis of the responses obtained by the respondents it was a large chunk of customers are

either fully satisfied or satisfied by the services offered by the ING VYSYA.

? 200 out of 354 respondents i.e. 56.49% are unsatisfied with the services offered. ING VYSYA needs

to look into the matter and solve the problems.

FINDINGS

1. Most of the respondents prefer MUTUAL FUNDS as a better option for Investment. People prefer

Mutual funds, Insurance, and Shares as the first three preferences of investment.

2. ING VYSYA has a least market share.

3. ING VYSYA is performing well in terms of returns in most of the plans offered by the company.

4. Most of the people are aware about the mutual fund as an investment option.

5. People are somehow interested in the Stock Market, irrespective of the fact that most of them are

not trading currently because they have a tendency if they take higher risk they will earn higher

returns compare to mutual fund.

6. Around 73% of people who are aware about the mutual fund among them 50.58% are not aware

about the working of mutual funds.

7. Peoples perception about mutual funds over unit linked insurance plans is quite good. They

perceive mutual funds as more flexible and liquid because there is an option of liquidity with an exit

load of .25% to 1.75% but in the ULIP if anyone withdraws the scheme then in the first year he


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charged by 35%.

8. Most of the select the company to invest in mutual funds on the basis of returns which is followed

by brand name and quality service. On the basis of the data collected it was observed that 30.25% of

people are inclined towards the MUTUAL FUNDS mainly because it promises higher returns.

9. From the data available through survey we can easily make out that 30.25% of people buy mutual

funds from a company on the basis of returns and 25% of people buy mutual funds from a companyon the basis of history and track record of the AMC.

10. 56.14% of the people are not satisfied with the Products and Service offered by the Prudential

ICICI only 14.91% of people are satisfied.

11. People mostly prefer Reliance Asset management Company for investment and Prudential ICICI is

the 2nd preference. Prudential ICICI accounts for around 21.21%, Reliance accounts for 25.53%,

followed by TATA that accounts for around 15% and ING VYSYA account is only 4.25%.

12. Prudential ICICI comes out with new plan in every week they are very aggressive in their strategy

they analyze the market very frequently and come out with the different plans which is not done by

the ING.

13. The overall working of ING VYSYA is good but there is a lack of technical network which is not up

to the mark.

14. ING VYSYAs network in the Rajasthan is not good, they have their branch only in three cities,

they are lacking in their business due to their bad network.

15. The book value of ING VYSYA is not more than sixty crores which hardly about 7% of HSBC and

10% of ICICI bank.

16. Here is the progress of the Mutual Fund since 1967-2008 are as below-

? The performance of mutual funds in India suffered qualitatively.

? The performance of mutual funds in India in the initial phase was not even closer to satisfactory

level.

? It is increased drasistically from March 07 to March 08. It means the people understand the option of

mutual fund and their importance.

17. Historically over the last year some mutual fund have given returns in excess of 25% CAGR like

Reliance Vision, Franklin Prima,Birla Sun Life tax relief 96 etc.

18. SIPs absorb market volatility, exhibit a compounding force inculcate a sense of savings discipline

in the individual, thereby act as a wealth builder tool in the long run.

19. The ING VYSYA bank has some good Unit Link Insurance Plan of three year lock in period during

which the policy holder can invest the money twice a time in the year in the mutual fund without any

money restriction and without any charges.

20. The overall reputation of ING VYSYA bank is not good in the Rajasthan where because of their


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availability of the branches and they are not doing any extra efforts to come to known by the general

public but recently they are establishing their new branches in the vicinity of Rajasthan.

LIMITATIONS

1. Most of the respondents were scared to disclose their personal data, especially when they are asked

about their annual income.

2. Lack of interest among certain respondents to fill up the questionnaire.

3. Respondents were apprehensive about disclosing their financial details.

4. Time was one of the limiting factors 45 days duration was really a short period to conduct a survey

like this.

5. Besides time, resources have played the biggest constraint for the research work.

6. Some sampling and non-sampling errors may have crept into the study.

7. The selected sample may or may not be considered as a true representative of the whole

population.

8. The sample was drawn from only one region therefore findings may not be applicable as a whole.

RECOMMENDATIONS

With radical changes in the new era of banking, general public is becoming more and more conscious

of the facilities and services the different banks are providing either free of cost or with a nominal

charge. To support the above statement some recommendations are given below which if followed

might help the ING VYSYA Mutual Fund to discover new peaks in the area of investments. The

recommendations are:

? With limited number of branches all across the country the ING VYSYA Mutual Fund are not able to

gain accessibility for the prospect customers. So to gain accessibility of the prospect customers,

PruICICI should increase the number of branches.

? With limited number of branches ING VYSYA Mutual Fund are also not able to gain effectiveness in

the distribution of investment and other products.

? ING VYSYA Mutual Fund should establish more and more Kiosks, Knopies at various food joints,

shopping malls, residential societies etc.

? The AMC should create an awareness level among the individual about the benefits of mutual funds

and the returns from mutual fund.


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? ING VYSYA Mutual Fund should design their products in the same manner in which their customer

wants like most of the customers are worried about their capital amount so they scared to invest even

a small amount in any option available in the mutual fund.

? Every one want to get the returns even in the bullish market like there are some product offered by

the ING VYSYA Global Commodities Optimix Fund in which the money is going to be invested not inthe equities but the commodities which is not affected by the inflation because the people have to

have purchased the basic necessities like sugar, oil, cloth etc.

? ING VYSYA doesnt have any fund in which they are offering insurance along with the SIPs like

Reliance SIP Insure, Birla Sun Life Insure.

? The Insurance plans of the ING is not doing well in the INDIA due to the lack of network and the

fund which is invested in the equities, in the ICICI Pru the fund is invested in the AAA rated companies

so they give at least 10-15% returns during after the completion of the lock in period where in the

ING the capital is not safe people are not getting safe their capital money, the ING must look into this

and improved their fund sectors.

Conclusion:

1. Market fluctuation plays an important role in returns of the schemes.

2. ICICI Infrastructure fund gives higher returns compare to other Infrastructure funds.

3. Most AMCs are not charging higher expense charges on schemes.

4. Fund Managers are changing Portfolio time to time in order to get higher returns.

5. Comparison with similar funds presents a true picture of the fund performance in front of company.

Suggestions:

During volatility in the market, fund manager should diversify the portfolio of the fund. ING VYSYA fund are lacking behind compare to other funds, so that they find out their weakness and

update their portfolio.

AMCs should not charge excessive cost from the investors for managing the fund.

The companies are not investing money in too much risky stock.

The ING must increase their branches as soon as possible because if they dont do this they lacked

with other banks with a very far distance in the sense of Book value.

There is a shortage of staff members in the bank.

BIBLIOGRAPHY

The list of the books, databases and websites that have been used for project are as follows:

i) BOOKS:

Prasanna Chandra, Financial Management- Theory and Practice, 4e (Tata Mc- Graw Hill)

Security Analysis and Portfolio Management

V.A. Avadhani

Security Analysis and Portfolio Management


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Donald E. Fischer & Ronald J. Jordan

ii) Internal Circular of Various AMCs :

Intellect

Fact sheets

iii) Websites:i. www.valueresearchonline.com

ii. www.amfindia.com

iii. www.indiainfoline.com

iv. www.myiris.com

v. www.enwikipedia.com

vi. www.finance.indiamart.com

vii. www.google.com

viii. www.moneycontrol.com

ix. www.karvy.com

x. www.sebi.gov.in

xi. www.crisil.com

xii. www.icicidirect.comxiii. www.mutualfundsindia.com

xiv. www.investsmartindia.com

ANNEXURE

QUESTIONNAIRE

1. Name :_____________________________________

2. Age :_____________________________________

3. Sex : Male Female

4. Marital Status :_____________________________________

5. Profession :_____________________________________

6. Monthly Income :

a. Less than Rs.10000

b. 10000-15000

c. 15000-20000


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d. 20000-25000

e. 25000-30000

f. 30000-35000

g. 35000-40000

h. Above 40000

7. Contact Number :_____________________________________

8. E-Mail Id : _____________________________________

1. What are your preferred investment priorities?

Name of Investment

A) Mutual funds

B) Insurance

C) Bonds and debentures

D) Equities and share markets

E) Real Estate

F) Commodities

2. Are you aware of Unit link Insurance Plans (MUTUAL FUNDS)?

A) Yes B) No

3. Do you know how a MUTUAL FUNDS works?

A) Yes B) No

4. Do you have any type of insurance or MUTUAL FUNDS Policy?

A) Yes B) No

5. In which companys mutual fund you have invested

A) Prudential ICICI

B) Reliance

C) HDFC

D) TATA

E) Kotak

F) ING VYSYA


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6. What is your perception about MUTUAL FUNDS Plans over Insurance?

A) Higher returns B) Flexibility

C) Variety of option (choices) D) Easy liquidity options

E) Any Other

7. How do you select and choose which companies MUTUAL FUNDS to buy?

A) Brand name service B) Prompt & Good

C) High returns D) Variety of options

E) Advertisements F) Any Other

8. Are you satisfied with the service offered by ING VYSYA?

A) Fully satisfied B) Satisfied C) Not Satisfied

If not then please state the reason:

_________________________________________________________________________________

_________________________________________________________________________________

_________

9. .Do you have any suggestion for improvement in the MUTUAL FUNDS Plans of ING VYSYA?

FUTURE ASPECT OF MUTUAL FUND INDUSTRY IN INDIA

1. The domestic mutual fund industry (IMFI) which grew at a healthy pace of 18-19% in the last eight

years against its worldwide growth rate of 13% is all set to beat past time records and now poised for


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through investment from the retail segment, where the top eight cities will contribute 75% of the AMC

profits. The rest will be attributed to tier II towns. Industry revenues are expected to grow by 43% to

$3.3 billion by 2012.

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